Heilongjiangin and Yunnan provinces in China account for half of the world’s legal hemp cultivation, according to the National Bureau of Statistics. Government support and a long tradition of hemp farming in China has turned the country in to the world’s epicenter of production and research.
While no ready statistics exist, it is my estimate that 3/4 of all CBD in the United States is sourced from China. The shady underbelly of middle-men and CBD brokers complicates the actual number. But the reality is, CBD is cheaper in China.
When new tariffs, a 25% tax, are placed on goods imported into the United States from China this year you better believe that CBD will be impacted.
Since Hemp Well does not source our hemp from China; we will not pay these new tariffs. However, with a 25% tax on 75% of the CBD in America and ever increasing demand, the market will suffer.
Until Chinese suppliers and US distributors negotiate this new political pricing wrench, ultimately, the consumer will bear most of the burden. Expect to pay more for your CBD products.