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The world of cannabis isn't isolated from global economic shifts—it's deeply embedded in them. When the Trump administration announced sweeping new tariffs against major trading partners, from China to Canada, few analysts considered how these protectionist measures would impact an industry that's already entirely domestic by legal necessity.

In this deep-diving conversation, Ben and Anna Rae unpack the paradox at the heart of cannabis economics: an industry that already achieves the "domestic manufacturing" goal that tariffs supposedly promote, yet still struggles with profitability and scale. The new trade war creates a perfect storm of upward pressure on manufacturing costs while simultaneously dampening consumer confidence and purchasing power.

The ripple effects of these tariffs expose fundamental tensions in the cannabis industry. Labor costs will rise while consumers become more price-conscious. Smaller craft operations will face greater challenges than larger, more efficiently scaled businesses, likely accelerating consolidation. Value products will gain market share as premium offerings struggle to justify higher price points to budget-conscious consumers.

Most importantly, this economic moment highlights the urgent need for regulatory convergence between hemp and cannabis frameworks and the breaking down of state barriers to create true economies of scale. As the hosts note, "If you're in the business of strengthening or building walls, you might be on the wrong side of history."

Whether you're an industry operator navigating these challenging waters or simply curious about how global economic policies affect niche markets, this episode provides critical context for understanding cannabis as both a product category and a business ecosystem. The path forward requires both responding to immediate economic pressures and advocating for sensible policy reform that centers consumer needs while allowing businesses to operate efficiently.

Ready to join the conversation about the future of cannabis in this changing economic landscape? Listen now and discover why smart industry leaders are thinking globally while acting locally.

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High Spirits is brought to you by Vertosa and Wolf Meyer.

Your hosts are Ben Larson and AnnaRae Grabstein.

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