Trump Tariff Chaos Hits Cannabis Industry Though Stress Consumption Is On The Rise

Plus, who's blocking cannabis reform in the senate?

April 10, 2025

Hey Benzinga Cannabis community, Maureen Meehan here to take you through the latest whirlwind of cannabis news, where politics get spicy, markets get moody and the plant we love keeps stirring up debate coast to coast.

Today’s big buzz? Senate drama (yes, again) - a sobering $21 billion downgrade in sales expectations, some seriously mixed signals from state lawmakers, and—because we like to keep things fresh—a splash of craft beer heartbreak courtesy of Tilray.

Let’s get into it...

🏛️ Politics & Policy: The Power Plays And Pushbacks

The U.S. Senate looks like a political tug-of-war field when it comes to cannabis reform. A fresh deep-dive from The Marijuana Herald reveals exactly where all 100 Senators stand on everything from recreational legalization to cannabis banking.

Not surprising: Democrats are mostly all in. Republicans? Still not vibing with adult-use legalization or rescheduling. And with the 2025 election season already heating up, this partisan chasm could shape what reform (if any) moves forward in D.C.

Over in the Keystone State, Rep. Emily Kinkead (D) says the momentum is real. While nothing’s been passed yet, she told The Philadelphia Citizen that “we are substantially closer than we were a year ago, or even six months ago.” Kinkead also noted the legislative balancing act: “If we do this right, everybody’s going to walk away from the table slightly dissatisfied.”

Classic politics. But hey, progress is progress.

🚨 Florida alert: The state Senate just passed another bill aimed at hemp-derived THC products and this time, it’s gunning straight for Delta-8 and THC beverages.

Sen. Colleen Burton (R) led the charge, calling out the industry for selling “products that are putting adults and children in the hospital.” Her push: stronger regulation—or outright bans. Not everyone’s thrilled, especially in Florida’s booming hemp economy. Stay tuned for how this could impact retail shelves.

North Dakota lawmakers just pumped the brakes on reform. A bill that would’ve lowered penalties for small marijuana possession was rejected by the state Senate in a 33-13 vote.

Translation: Possessing less than half an ounce will not be treated like a parking ticket anytime soon. The fight for decrim there continues, but the red-state resistance is holding strong.

📉 Markets & Industry: The Struggles Behind The Smoke

Let’s talk dollars—and a lot fewer of them. Whitney Economics revised its retail cannabis sales forecast down by a whopping $21.1 billion for 2025–2030. Yikes.

Blame it on taxes, oversupply, federal inertia and the rise of alternative cannabinoids like Delta-8. Founder Beau Whitney said that while 2025’s projected sales will hit $34 billion, that’s still short of the previous forecast. The long-term outlook? Cloudy with a chance of market contraction.

Big implications for investors, operators, and policymakers alike.

Another one bites the dust. Tilray Inc. (NASDAQ: TLRY) is continuing its brewery exit strategy, closing down Oregon-based Hop Valley Brewing after betting big on craft beer to balance cannabis revenue.

Turns out, the plan didn’t quite ferment into profits. The closures follow a string of acquisitions that never lived up to their buzz. It’s a sobering sign for cannabis companies chasing non-plant-based diversification.

📦 Supply Chain & Economy: Pressures Rising

The Trump tariffs are back and they’re messing with more than just steel and soybeans. Cannabis businesses are feeling the heat from rising costs for equipment to delays in product packaging.

MJBizDaily reports that “Trump’s ‘Liberation Day’ edict” is making life harder for both licensed cannabis operators and ancillary companies. If inflation stays sticky and global trade tensions escalate, get ready for even tighter margins in this already stressed sector.

🧠 Culture & Consumers: What’s Driving Demand?

Trump Administration Causing More Cannabis Consumption, Says Survey

Yes, you read that right—half of adult cannabis consumers say they’re toking up more because of the Trump administration. That’s from a Harris Poll survey done for Royal Queen Seeds.

The stat jumps even higher among younger women: 59% of female consumers ages 21–34 said they’re planning to consume more. Stress? Economics? Political vibes? All of the above? Looks like politics may be a stronger influence on weed habits than some dispensary discounts.

🔥 That’s a wrap for today’s Cannabis Daily! Thanks for rolling with me. I’ll be back on Friday with more policy drama, market shakeups and green gold insights.

Until then, stay informed, stay elevated and keep it Benzinga.

BEFORE YOU GO

Were you forwarded this email? Click here to subscribe.

And be sure to check out our other newsletters:

Ring The Bell: Created for market enthusiasts by market enthusiasts, this twice-daily newsletter delivers top stories, fast movers, and hot trade ideas straight to your inbox. Subscribe here.

Future Finance: Where fintech, crypto, and the future of finance collide. Future Finance is a perfect lunch read packed with quick bites for industry enthusiasts. Subscribe here.

Advisor: Tailor-made for Financial Advisors, this weekly newsletter has industry-specific insights, analysis, and news. Subscribe here.

Tech Trends: Get the inside scoop on AI, the hottest gadgets, and mind-blowing tech trends. Subscribe here.