Cannabis stocks surge on reports Trump will reclassify marijuana; Tilray jumps 28%
Published Fri, Dec 12 2025
8:04 AM EST
Updated 15 Min Ago
Alex Harring@alex_harringWATCH LIVEKey Points
- President Donald Trump will significantly ease federal restrictions on marijuana and change its classification, according to the Washington Post and Axios.
- Cannabis stocks surged following the report.
- Tilray Brands jumped by more than double digits.
A view of cannabis clones at Harborside Oakland Dispensary on August 11, 2025 in Oakland, California.
Justin Sullivan | Getty Images
Cannabis stocks jumped on Friday following reports that President Donald Trump will significantly ease federal restrictions on marijuana.
Weed producer Tilray Brands surged more than 28% in Friday's premarket, while Canopy Growth jumped 23%. Cannabis facility operator Innovative Industrial Properties climbed more than 6%.
The Amplify Seymour Cannabis ETF (CNBS) rallied more than 19%.
Stock Chart Icon
Stock chart icon
Tilray Brands, 1-day
Trump is expected to tell agencies to reclassify marijuana as a Schedule III drug, The Washington Post reported on Thursday. Such a move would allow cannabis companies to fall under different tax regulations and encourage investment, while placing pot in a class of drug that includes steroids and Tylenol with codeine.
Axios reported the reclassification, which would move marijuana away from a group that includes heroin and into a lower tier with less dangerous drugs, would take place early next year.
Trump previously floated a change in weed's classification in August.
Pot stocks have struggled since many went public around seven years ago even as cannabis has received broader acceptance and easier state classifications. Tilray shares were down 36% this year before Friday's move.
Get Morning Squawk directly to your inbox
The Morning Squawk newsletter by Alex Harring is your rundown of five things to know before the stock market opens.