The most exciting political race of the year — the 47th USA presidential election — has ended with a victory for Republican Donald Trump. The world is awaiting bold and unconventional decisions across a wide range of areas. But what changes might happen in the cannabis market with Trump back in office? After all, cannabis played a significant role in the election campaign of the year. Moreover, Biden has already launched a campaign to legalize recreational cannabis at the federal level.
Well, predictions depend on several factors. Let’s break it down.
USA Cannabis Regulation
During the 2020 election campaign, Trump’s rhetoric on marijuana use was very tough, he even threatened to execute all the drug dealers. But this year, his official stance is far more cautious, if not the opposite. During his presidential campaign speeches, especially in swing states, he repeatedly hinted at his support for cannabis reform in the USA, though he did not directly comment on the question of federal legalization. It’s worth mentioning that as part of the reform, the US Department of Justice has already supported the reclassification of cannabis from a Schedule I controlled substance.
There have also been other positive signals for cannabis industry from the new US President:
- Trump mentioned that he stands FOR the legalization of weed smoking in his home state of Florida. He has said: "Someone should not be a criminal in Florida, when this is legal in so many other States." Although this reform ultimately failed in the state.
- Throughout his campaign, he frequently claimed that medical cannabis producers should be granted full access to all the bank services.
- During a debate, Trump also criticized Kamala Harris over her prosecutorial record. He said that she had sent "millions of black people to prison" for marijuana issues.
- There are rumors that Trump has met with Kim Rivers, an influential businessman for the cannabis industry. Given Trump’s support for the entrepreneurs’ community, there’s little doubt that the White House will provide favorable conditions for legal cannabis companies operating in the industry.
International Relations and global industry
The USA is a key player in the global cannabis market. Any changes in US federal policy or trade relations could have a significant impact. If Trump continues his approach of lowering taxes and deregulation, this could create favorable conditions for the growth of the cannabis industry in the U.S., attracting investments and developing technologies. These factors would, in turn, influence the global market. Why? Because the most advanced strains of recreational marijuana, as well as the technologies used to cultivate them, come from California.
Furthermore, if Trump reduces federal barriers, this could improve conditions for the export of cannabis. Right now, cannabis remains illegal at the federal level in the US. Also, the USA supports the UN 1961 Convention, which sets strict international standards regarding narcotic substances. These two factors slow down international cooperation in cannabis trade. A more flexible policy from Trump could pave the way for cannabis exports from the US to countries where cannabis is legalized such as Germany, Canada, Australia, and others.
In other words, much will depend on the internal US policy regarding cannabis legalization. But it’s important to notice that the global trend toward cannabis legalization will likely continue, regardless of USA policy. While USA politics may speed it up or slow it down, it’s unlikely to stop it.
Photo: Official White House Photo
