Trump Considers Reclassifying Cannabis, Prompting Surge in Stock Prices

In a recent announcement, U.S. President Donald Trump indicated that his administration may reclassify cannabis to a less dangerous drug category. This possibility has sparked a substantial rally in cannabis-related stocks.

Immediate Market Reaction

Following President Trump’s remarks, stocks in cannabis companies saw dramatic increases. Notably, New York-based Tilray Brands soared by nearly 42%, while Canada’s Village Farms International and Canopy Growth Corp experienced gains of about 34% and 26%, respectively.

The Current Legal Status of Cannabis

Although cannabis is fully legal in 24 U.S. states for recreational use, it remains illegal under federal law. It is classified as a Schedule I drug, which includes substances like heroin, LSD, and ecstasy, characterized by ‘no currently accepted medical use and a high potential for abuse’ according to the Drug Enforcement Administration.

Potential Reclassification

President Trump mentioned that his decision on cannabis reclassification would come in the next few weeks. He acknowledged the complexity of the subject, stating it is ‘very complicated’ and expressing his hopes that the decision made will be the correct one. Despite hearing ‘great things’ about medical-use cannabis, Trump also noted the mixed opinions surrounding the drug, highlighting the broader societal debate over its use and effects.

Historical Context and Political Implications

Former U.S. President Joe Biden had proposed shifting cannabis to a Schedule III classification, which represents drugs with a ‘moderate to low potential for physical and psychological dependence.’ However, this change was not implemented before his term ended in January. Trump’s current consideration of this reclassification could mark a significant shift in federal drug policy.

Conclusion

As the nation awaits Trump’s decision, the discussion around cannabis continues to evolve, reflecting broader changes in societal attitudes and the potential for significant political and economic impacts. The outcome could have far-reaching effects not only on public health and criminal justice but also on the burgeoning cannabis industry itself.