A new legal opinion from Israel’s Legal Advisor to the Prime Minister has effectively ended an effort to impose steep tariffs on Canadian medical cannabis imports.
The ruling comes in response to a dispute between Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat. In April, Smotrich formally rejected a proposal to implement tariffs of up to 165% on Canadian cannabis, citing legal and economic concerns. Barkat challenged the rejection, claiming it conflicted with Israeli law and overstepped the Finance Ministry’s authority.
However, a newly released 15-page letter from Dr. Yuval Roitman, head of the Ministry of Justice’s economic law department, states that Smotrich acted within his legal rights. “We found no reason to cancel the Minister of Finance’s decision on the legal level,” Roitman wrote, appearing to shut the door on the proposal.
The push to add the steep tariffs dates back to January 2024, when Israeli authorities accused Canadian producers of “dumping” cannabis into the local market. A preliminary report was issued in July 2024, followed by an April 2025 announcement that the government would move forward with the tariff plan—until Smotrich stepped in.
With the legal opinion now backing the Finance Ministry, the matter appears settled.
