A recent ruling by a federal trade court declaring key elements of former President Trump's flagship tariff policy unconstitutional has brought significant relief to many internationally-facing U.S. businesses, including those in the cannabis sector.
As this decision is welcome news by many businesses, the situation remains far from settled. An appeal is already in motion, and there's growing speculation over whether Congress will intervene to preserve the policy. Jason A. Little, shares his insight with Business of Cannabis that the ongoing uncertainty is what is really threatening the US cannabis sector.
From the article:
"The broader issue is the uncertainty itself," he explained.
"Whether you're in the stock market or running a small business, uncertainty causes stress. It tightens budgets, impacts confidence, and even if the disruption doesn't fully materialise, the fear alone can create very real challenges."
"While the individual cost difference for each item may not be massive, collectively it adds up. We're seeing 5–10% price hikes on a number of these goods... This is especially true for smaller agricultural producers and processors in states like New York and Massachusetts. Most of them aren't in the medical space, and they're already dealing with tight price points. These cost increases absolutely get passed down to them."
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