Reports indicate that U.S. President Donald Trump is expected to push for the reclassification of cannabis as a "less harmful drug," directly fueling a significant pre-market rally in shares of U.S. cannabis producers on Friday. Leading the gains were Tilray Brands (TLRY.US), up over 30%, Canopy Growth (CGC.US) rising 23%, Aurora Cannabis (ACB.US) climbing 20%, SNDL (SNDL.US) gaining 14%, and Cronos Group (CRON.US) advancing 12%.
According to media sources, Trump is considering moving cannabis from "Schedule I"—a category indicating no medical use and high abuse potential—to "Schedule III," which denotes substances with lower dependency and addiction risks. The president reportedly discussed the matter in a call with House Speaker Mike Johnson, Health and Human Services (HHS) Secretary nominee Robert F. Kennedy Jr., CMS Administrator Mehmet Oz, and several cannabis industry executives. However, a senior White House official noted that Trump has yet to make a final administrative decision.
Schedule III drugs, such as ketamine, anabolic steroids, and codeine-containing Tylenol, have accepted medical uses but carry minor abuse potential. In contrast, Schedule I substances include LSD and heroin.
In March 2024, the Biden-era Justice Department proposed reclassifying cannabis to Schedule III, but the DEA initially postponed and later canceled related hearings. During his 2024 campaign, Trump publicly pledged to "unlock medical cannabis use by reclassifying it as a Schedule III drug." Such a move would reduce criminal penalties for personal use, ease federal tax and business restrictions (e.g., allowing U.S. cannabis firms to deduct commercial expenses), and improve industry conditions—benefiting legal cannabis businesses and workers.
Before his nomination as HHS Secretary, Kennedy Jr. had repeatedly advocated for decriminalizing cannabis and establishing a regulated legal sales framework, positioning himself as relatively progressive among reform advocates. During Senate confirmation hearings, he stated that HHS would "review scientific data on cannabis reclassification" and base decisions on existing DEA evaluations rather than proactively pushing for legislative or administrative relaxation.