What Do Tariffs Mean For The Cannabis Industry?
Join host Anthony Varrell and guest Anthony Coniglio, CEO of NewLake Capital Partners, for a sharp, no-nonsense breakdown of what tariffs really mean for the cannabis industry. Capital markets take center stage as the pair reflects on the latest earnings season, noting that hemp is also eroding more market share than previously thought.
While headlines paint a dire picture, we dig into the facts: the actual exposure to tariffs is limited on cannabis production and labor. That said, imported items like vape cartridges and packaging could see cost increases, and that creates challenges, especially in price-sensitive markets.
Operators like Trulieve and GTI continue to post strong numbers, others show declining year-over-year revenue and margin compression. Varrell and Coniglio explore how top operators are adapting—stockpiling inventory, delaying purchases, and adjusting supply chains. They also dive into the real risk: a pricing gap that could send consumers back to the illicit market.
Is this an existential threat or just another overreaction in a hypersensitive industry?
Retail competition from unregulated hemp products also emerges as a key concern. While site-specific diligence on smoke shops is tricky due to their ubiquity, state-level enforcement could eventually shift the playing field. Same-store sales are also discussed—largely absent from cannabis earnings because the numbers likely don’t tell a strong story.
Michael Bronstein joins the second half of the show with updates on the Texas House’s expansion of the teacup medical cannabis program. Though still restrictive, it increases licenses and allows limited inhalation. More significantly, Texas is moving to regulate intoxicating hemp through THC caps, synthetic bans, and tighter product labeling. This could influence other red states and set national precedent ahead of the Farm Bill.
Tune in to get real-world insights, strategic context, and a level-headed take on how the cannabis sector is navigating global trade tension.
