Kush Supply Co. On USA-China Tariffs
We realize there is a lot of uncertainty with the escalating USA-China trade conflict and how this will affect cannabis businesses.
Effective September 24, 2018, the US government placed an additional 10% tariff duty on certain imports from China. Many of these re-taxed imported goods are components and supplies critical to the cannabis industry.
On January 1, 2019, the tariff will potentially increase to a rate of 25%.
Rest assured that Kush Supply Co. is prepared with measures already in place to prevent this price increase from affecting your bottom line.
Here’s some clarity on how the new tariffs will affect you:
- There will be a 2-4% price increase on a very small number of our products.
- Tariffs are only on Chinese made products.
- Kush Supply Co. will absorb the majority of this increase at the source.
- Kush Supply Co.’s supply chain is made up of many U.S.A. vendors that are not affected.
What is a tariff?
A tariff is a tax imposed by a government on goods imported from other countries, that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services. The tariff is paid by the importer and usually added to the final sale price of an item.
How am I affected?
Kush Supply Co. has made sure your business is minimally affected by tariff changes. Our strategic focus has long been moving a large amount of our glass and plastics suppliers to the USA so there will be no price increase on our American-made goods.
We’ve diligently planned ahead to account for these changes and as a result, you will NOT be seeing this tariff increase passed onto you at the final purchase price.
Does a 10% tariff mean a 10% increase in my price?
NO, we will not charge you 10% more on the final price of an item. Rather than simply pass along the increased cost, at Kush Supply Co. we are absorbing the cost at the source.
Our final pricing on Chinese imported goods will be raised a mere 2-4% (depending on the item it may be less), and only on a very small number of products.
Our promise to cannabis businesses
Kush Supply Co. will always have the best price on the market, and you will never see any hidden costs or surprise line items in your receipts.
The benefit of doing business with us is the overall hit to your bottom line will be less impacted.
Our stance on foreign imports
At Kush Supply Co., we already have the strong USA and international supply chain in place to service your company with the highest quality goods at highly competitive prices.
And while U.S. government tariffs on Chinese goods are already causing inflation within the cannabis industry, Kush Supply Co. is better poised to help you overcome these types of business challenges.
We hope that you continue doing business with us.
If you have any questions, ask your sales rep or call 888.920.KUSH