Tilray Inc. (TLRY:CA), a prominent player in the global cannabis industry, recently reported its third-quarter fiscal 2025 financial results, highlighting net revenue of $186 million. Notably, the company stated that current tariff implementations have not impacted its operations. ?
However, the broader cannabis sector faces potential challenges due to recent tariff escalations.
On April 9, 2025, President Donald Trump announced a 90-day suspension of most new tariffs but increased tariffs on Chinese imports to 125%. This move aims to address perceived unfair trade practices and has led to retaliatory measures from China.
Tariff Implications for Tilray Inc:
While Tilray has thus far avoided immediate disruptions from the latest tariff measures, there are a few key areas where the company could be indirectly affected:
- Rising Supply Chain Costs:
The cannabis industry relies heavily on imported equipment, packaging materials, and specialized inputs. Tariffs on Chinese goods, in particular, may drive up costs for these essential supplies, putting pressure on margins. - Export & Market Access Challenges:
Should retaliatory tariffs from other countries target cannabis-related products or ancillary goods, Tilray’s international sales strategy may face headwinds, especially in countries where the company is aggressively expanding.
Read More: What Canadian Stocks Would Trump’s Tariffs Hit the Most?
- Impact on Investor Sentiment:
Escalating trade tensions introduce volatility and uncertainty into the market. Investor confidence across the cannabis sector could be shaken, influencing trading volumes and price momentum.
Stock Target Advisor’s Analysis on Tilray Inc:
Stock Target Advisor’s internal analysis categorizes Tilray as “Slightly Bearish,” based on a mix of four positive signals and five negative ones. At the time of the most recent update, Tilray’s stock was trading at CAD 0.75.
- Morningstar: Rated Tilray as a “Hold” with a consistent target price of CAD 2.70 across multiple reports.
- CIBC World Markets: Holds a “Neutral” stance, assigning a target of CAD 2.75.
Conclusion:
While Tilray Inc. has yet to experience tangible effects from newly imposed tariffs, the risk landscape is evolving.
As reciprocal tariffs between the U.S., Canada, and China continue to shift, companies like Tilray must stay agile and responsive.
For investors and stakeholders, staying ahead of policy developments will be key to navigating what could become a more complex operating environment for the cannabis industry.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
