KHAN: Legal cannabis can help Canada fight the trade war

On April 20, Canadians from coast to coast will light up to celebrate legal cannabis — a culture that’s come a long way since 2018. Thanks to legalization, more than 3,600 storefronts nationwide now offer safe, government-regulated products. That’s something to be proud of.

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But the job’s not finished.

Even with a growing legal market, illegal cannabis still rakes in nearly $2.6 billion a year, according to recently released Statistics Canada data. That’s money going straight into the pockets of organized crime, while licensed businesses, who follow the rules and pay their taxes, struggle to compete. It’s bad for business, bad for public safety, and bad for the country.

With a federal election around the corner and a trade war heating up with the U.S., it’s time for our politicians to get serious about supporting a Canadian industry that actually works.

Here’s why: Legal cannabis is mostly immune to tariffs. Everything sold in Canada is grown in Canada. That makes it one of the few industries that’s not vulnerable to U.S. trade shenanigans. Statistics Canada has also reported that legal cannabis added over $8.3 billion to our GDP in 2024 alone — more than natural gas distribution, dairy, and beer. A 2021 study by Deloitte found that at that time, Canada’s legal cannabis industry had supported over 150,000 jobs since legalization.

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That’s no small feat. But this industry could be doing even more — if governments are willing to step up.

Step one: Crackdown on illegal dispensaries.

In Toronto alone, about 70 illegal cannabis shops are operating right under our noses. That’s about one in five stores. Some municipalities have stopped enforcing the rules, giving illegal sellers a free ride while law-abiding retailers pay the price. It’s ridiculous. We need real enforcement and penalties if we’re serious about public safety and supporting Canadian jobs.

Step two: Update outdated THC limits.

Right now, the federal government caps cannabis edibles at just 10 milligrams of THC per package. That’s fine for some, but it doesn’t cut it for many consumers. South of the border, most legal states allow 100 milligrams per package. As a result, the illicit market for edibles there is half the size of ours. If Ottawa raised the limit responsibly, we could take a big bite out of illegal sales, including many products packaged to be attractive to kids.

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Step three: Let legal producers market their products to adults.

Cannabis companies can’t invest in retail-level promotions like alcohol companies can, despite no good reason for the restriction. Letting them advertise responsibly within already age-gated stores would help build trust in legal brands, educate consumers, and grow customer loyalty—all while pushing shady operators out of the market.

This shouldn’t be a partisan issue.

Legal cannabis is a Canadian success story — but it’s running up against red tape, soft enforcement, and outdated rules. If we want to protect jobs, grow the economy, and keep dangerous products out of kids’ hands, we need to double down on a legal industry that actually delivers.

As Canadians head to the polls amid an ongoing trade war and economic uncertainty, they should be asking our elected officials — of all political stripes — to take the necessary steps to support a thriving, safe, and competitive legal cannabis industry — one that replaces, rather than competes with, the illicit market.

— Omar Khan is Chief Communications and Public Affairs Officer for High Tide Inc., whose Canna Cabana subsidiary is the largest cannabis retail chain in Canada.

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