Chinese tariffs are impacting retailers selling consumer goods, but it does not appear that medical marijuana sales are feeling its effects, according to a recent report by Hemp Industry Daily.
The reason is that hemp trade from the United States to China is virtually non-existent, according to Brian Cheng, a general partner at Arcview Group in San Francisco. He shared with Hemp Industry Daily “While hemp seeds are true hemp products (hemp biomass) are on the list of products affected by the tariff, neither account for a signature amount.”
Interestingly enough, even though hemp is hardly exported from the United States to China, Hemp Industry Daily also reports that China sent $3.3 million worth of hemp to the United States in 2017, coming right after Canada, which exported $58 million.
“There is no cannabinoid market in China, so the hemp farmers and businesses serving the cannabinoid market (in the U.S.) have no business export to China. The industrial usage of hemp is satisfied by domestic production of hemp in China. Thus, the tariffs will have no effect on U.S. hemp producers and businesses.”
Further, Bob Hoban of the Hoban Law Group, also shared with Hemp Industry Daily that the tariffs imposed by the United States on China as beneficial to U.S. hemp farmers, stating “I see the tariffs that have been imposed as it relates to China as a very beneficial thing for U.S. hemp farmers, or at least for U.S. farmers that would like to pivot to industrial hemp.”