The 25% increase in tariffs impact on vaping & cannabis
NEW YORK: Today, The Blinc Group’s Co-CEO, Arnaud Dumas de Rauly, is testifying at The Office of the U.S. Trade Representative (USTR) public hearings regarding proposed tariffs on approximately $16 billion worth of Chinese products.
These proposed tariffs increases – including HTS No. 8543709930 and HTS No. 8543709940 related to vapor product devices, batteries intended for use in vaping devices, and pre filled pods and cartridges – will do great harm to American businesses, medical marijuana patients and adult use consumers while doing nothing to empower American companies to manufacture these products themselves.
The current administration’s trade war raged against China will:
Reduce access to reduced risk vapor products and therapeutic cannabis products to American citizens,
Not bring back jobs to America,
Cut current medical marijuana and adult use States tax revenues by over 25%,
“Increasing tariffs may have worked 20 years ago, when US manufacturing was at its highest, but given the current economy, it is a major mistake to believe that this will bring jobs back to American citizens,” said Dumas de Rauly.
With regards to taxes, “The State of Colorado has collected over $247M in Cannabis tax revenue in 2017. Considering that over the same period, cannabis vaping products comprised 25% of sales volumes, the loss of taxes due to non-availability of the products, would represent $61.75M, which represents the cost of educating 10,445 students. Yes ladies and gentlemen, this revenue is used to fund education, regulation, substance abuse prevention and treatment programs.”