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srael's 165 percent Tariffs on Canadian Cannabis Imports Approved by Ministry of Health Ben Stevens Business of Cannabis Friday 11 Apr 2025 Israel has seemingly followed in the footsteps of its US ally this week after announcing plans to impose 165% tariffs on cannabis imports from Canada. The state’s Ministry of Economy, spearheaded by the Minister of Economy and Industry Nir Barkat, announced this week that it planned to go ahead with the proposed levies against Canadian cannabis imports, amid ongoing accusations of ‘product dumping’. In early 2024, Business of Cannabis reported that the Ministry had launched an investigation into its domestic cannabis market, following numerous complaints from local producers that they were struggling to compete on price with Canadian imports. The investigation was launched in January, and a preliminary decision was published in July revealing plans to impose severe tariffs on Canadian imports. In a 126-page final report, published on November 10, fees starting as low as 2% for Decibel cannabis, 33% for Village Farms (Pure Sunfarms), 39% for Organigram, and 77% for Tilray were proposed. All other companies would face a levy of up to 175%. While the proposals still require sign-off from Finance Minister Bezalel Smotrich and the Knesset Finance Committee, it enjoys strong support from local producers who claim the influx of cheap imports has decimated their margins and forced sales below cost. Should the levy be approved, it will be applied over four-years, a reduction from initial suggestions of a five-year tariff. While most Canadian producers will face the full 165% rate, a handful of companies including Decibel (12%), Village Farms (28%), Organigram (53%), and Tilray (70%), will be subject to lower duties. These companies, however, have already scaled back or halted exports to Israel, meaning the vast majority of imports currently entering the market would be subject to the full levy if enacted. Mike Gorenstein, CEO of Canadian cannabis operator Cronos, told Business of Cannabis: “We are deeply disappointed by the decision. The imposition of these tariffs will negatively impact Israeli medical cannabis patients who benefit from competitive pricing and product diversity. “Such tariffs will limit patient access to a variety of high-quality cannabis products, which are crucial for their health needs. As an Israeli business, we have invested significantly in our operations since 2018 and remain committed to delivering value. This decision undermines innovation, competition, and access for those who need it most.” Speaking to Stratcann in November 2024, Canadian Cannabis Council (C3) President Paul McCarthy said it was impossible to ‘acertain how any of these decisions were made, adding that there were major concerns over inconsistent comparisons between retail, wholesale, and bulk prices. C3’s submission to the Israeli government revealed that the average price of bulk cannabis flowers in Canada is approximately CAD$0.96 per gram, according to data from the Canadian Cannabis Exchange. In response, the Israeli Ministry of Economy dismissed this figure, stating that it represents ’low-quality’ products not comparable to those sold in Israel. McCarthy countered that this distinction is unfounded, emphasizing the need for a proper ‘apples to apples’ comparison. Canadian opposition to the levy was backed by former Israeli National Economic Council head Professor Eugene Kandel, who argued that the methodology used to calculate the dumping margin was flawed. The move has also drawn opposition internally, with The Ministry of Health and the Israel Competition Authority both publicly opposing the levy, warning of negative consequences for patients and market integrity. Health officials argue the move could drive up costs, reduce product diversity, and erode access https://businessofcannabis.com/israels-165-tariffs-on-canadian-cannabis-imports-approved-by-ministry-of-health/
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