The Fed is expected to cut rates Wednesday, but it is unlikely to tell markets what they want to hear on future rate cuts.Market Insiderread more
Pelosi said Trump should not have tried to address China's trade practices in a way that opened Americans up to financial pain.Politicsread more
Investors await the Fed's latest decision on monetary policy, set to be released on Wednesday stateside. The U.S. central bank is widely expected to cut rates by 25 basis...Asia Marketsread more
Large banking institutions face the risk of failure if interest rates in Europe continue to stay negative, warns the global chief economist of the Economist Intelligence Unit.Banksread more
Live the high life with a night's stay at Highclere Castle, the iconic stately home made famous by Downton Abbey.Spendread more
The fallout from two fatal crashes of Boeing 737 Max planes has ensnared the manufacturer's most-loyal customer: Southwest Airlines. The carrier has canceled thousands of...Airlinesread more
Brent crude oil jumped the most in history in the previous session after attacks on Saudi's oil industry disrupted the kingdom's production.Marketsread more
In the survey, conducted after the third in the Democratic Party's series of debate, the former vice president draws 31% compared to 25% for the Massachusetts senator. At 14%,...2020 Electionsread more
Stocks rose slightly on Tuesday, but gains were capped as the Federal Reserve kicked off a two-day monetary policy meeting.US Marketsread more
The U.S. Air Force's top general says he hasn't received direction to send additional bombers to the Middle East after what is believed to be Iranian attacks on Saudi Arabian...Defenseread more
Facebook has partnered with Ray-Ban maker Luxottica to develop augmented-reality glasses code-named 'Orion', people familiar with the matter told CNBC.Technologyread more
If a full-blown, tit-for-tat U.S.-China trade war erupts, a slew of consumer goods could be subject to as much as 25 percent in tax. On the hit list: imported, Chinese-made vaping devices.
That could have far-reaching consequences for the vaporizer industry, as well as the booming cannabis industry, which has been growing like a weed, so to speak.
Currently, nine states plus the District of Columbia allow recreational marijuana use, and 30 states and D.C. permit some form of medical marijuana, which is used to treat cancer patients and those with chronic pain or PTSD, among other ailments. More states are likely to follow suit.
As a result, legal sales of marijuana are projected to jump to more than $20 billion by 2022, from approximately $10 billion in 2018, according to Marijuana Business Daily. Estimates from an Ackrell Capital research report show even greater growth (see chart below).
Much of the cannabis and cannabis concentrates on the market today are grown and sold in the U.S., but the devices used to consume them are manufactured in China, according to Arnaud Dumas de Rauly, co-CEO of The Blinc Group, a vapor and cannabis incubator, and treasurer for the Vapor Technology Association. Those devices can cost anywhere from $50 to $500, depending on the type.
That's where a trade war threatens to put a stranglehold on the marijuana market.
Companies that import vaping products will have to either absorb the additional cost of the tariff, source production in another country or increase the prices charged to consumers.
However, the profit margin on those devices is only between 10 percent and 15 percent and few alternatives exist for making them, Dumas de Rauly said. As a result, the extra cost of the tariff will be largely passed on to consumers by way of higher prices.
That will impact the "entire cannabis consumption market — including medical and recreational marijuana," he said.
"There's no question that tariffs will raise the price of those products, which producers and importers will try to pass on," added Dan Ikenson, the director of the Herbert A. Stiefel Center for Trade Policy Studies at the Cato Institute, a nonprofit think tank in Washington, D.C.
"If the duties go into place in September, prices could be higher in a month," Ikenson said.
So far, "we've seen tariffs on imported steel, aluminum, solar panels and washing machines," he said. But for a large part, shoppers haven't been heavily impacted yet. "Consumers buy washing machines once every 20 years."
Vaping products for marijuana, medical or otherwise, are a different story. "It's hard to predict how people will react," Ikenson said.
"For those who need it, they don't have a choice," said Mary Lovely, a professor of economics at Syracuse University and nonresident senior fellow at the Peterson Institute for International Economics in Washington, D.C., although the devices themselves are only a portion of a medication's total cost, she added.
Americans' views of the new tariffs between the U.S. and some of its trading partners remain divided, although they are more negative than positive overall, according to a new poll of more than 1,000 adults conducted by the Pew Research Center in July.
Nearly half, or 49 percent, of Americans said increased tariffs will be bad for the country, while 40 percent said the tariffs will be good for the U.S. Just 11 percent said they are unsure of what the impact will be.