June 12, 2025 | Contributor Posted in Stratcann
As Canada grapples with US tariffs and widespread layoffs, cannabis is emerging as an industry that could help smaller communities weather the storm.
US President Donald Trump has slapped Canada with sweeping levies, including a 25% tariff on automobiles and a 50% tariff on steel and aluminum. As a result, Canada lost 33,000 jobs in March, and the unemployment rate went up to 6.7 per cent from 6.6 per cent in February, according to Statistics Canada.
The cannabis industry, though, is largely domestic, which has allowed it to be one step removed from Trump’s tariffs, economist Jim Stanford told StratCann. “It’s worth investigating the potential of the (cannabis) industry as a stabilizing factor,” he said. “Non-traded sectors are going to play a more important role in the next few years.”
According to Cannabis Council of Canada President Paul McCarthy, the industry employs about 80,000 people, primarily in small and medium-sized towns where cultivation facilities are often located. A recent Statistics Canada report found the industry contributed at least $7.4 billion to Canada’s GDP in 2024 and more than $43 billion since legalization.
“(The cannabis sector) is a great opportunity to revitalize smaller communities and support communities that perhaps need some good-paying jobs there,” McCarthy told StratCann.
He noted the industry supports a wide range of roles, from skilled trades to lab technicians to corporate staff, and there is an opportunity for smaller communities to embrace the industry to bring economic advantages. This has already been done in towns across the country, with the most famous example being Smiths Falls, Ontario. Canopy Growth took over an old Hershey’s factory there and became the main economic driver for the town.
There are success stories across the country of cannabis offering impactful employment and boosting economies, according to McCarthy. Decibel Cannabis has facilities in western Canada, including one located on the outskirts of Calgary, which employs approximately 450 people. Oceanic ReLeaf is based in Newfoundland and Labrador and acquired a brand-new fish processing plant whose operations had fallen through. McCarthy said it was a let-down for the town of Burin, but cannabis proved to be their saviour, and the company now employs over 100 people there.
Then there’s the Cannabis Summit, held in Prince George, BC, in 2024. Organizer Nadine Furnell told StratCann that the festival transformed a previously dead downtown area into a thriving scene, attracting over 2,000 people in one day. She said every vendor at the festival said they made the most money there out of any other market they’ve attended.
One of the biggest success stories of cannabis’ impact on a smaller community is Organigram, the current industry leader. The company is based in Moncton, New Brunswick, and employs over 725 people, making it one of the largest private sector employers in the province. Mark McKay, Organigram’s communications director, told StratCann that the company has contributed over $34 million in local spending.
“(We’ve) proven to be an economic powerhouse for the province,” McKay said. “Not only through the jobs we’ve created but also through the investments that we’ve made in the province.”
Organigram recently paired with Abacus Data and found that 62 percent of Canadians thought that cannabis could play an even more important role in Canada’s economy. Out of a survey of nearly 2,000, nine out of ten Canadians said it’s time to find new ways to grow the economy.
“Canadians want their country to thrive through innovative, homegrown industries, and cannabis is firmly on that list,” Beena Goldenberg, CEO of Organigram, said in a statement.
While cannabis can look like a knight in shining armour, it does have its kinks. The economist Stanford noted that if Canada enters a recession, the industry could be affected as Canadians would have less money for discretionary spending. He also noted that the industry has its moments of instability, as seen by Canopy Growth layoffs in Smith Falls when the company downsized.
“There absolutely is risk involved,” Stanford said. “A community that is thinking about (cannabis) would have to very carefully study the demand outlook.”
McCarthy acknowledged that oversupply and rapid expansion soon after legalization created turbulence, and the last five years in the industry have been characterized by entrenchment and downsizing. However, he said the industry is now entering a new stable phase that is ripe for investment and expansion of facilities.
How much cannabis can help small towns is dependent on how much the industry is growing, and McCarthy was quick to point out government policies that he says are hindering the industry. He highlighted the excise tax and the proliferation of the illicit market as the two biggest factors that are drawing down the cannabis industry, which should be addressed if Canada wants to boost the sector.
“The government needs to get serious about cracking down on the illegal cannabis,” he said. “They’re stealing jobs from companies that would largely be operating in small towns.”
Av Singh, the executive director of the Scotian Cannabis Alliance, echoed McCarthy’s concerns and told StratCann that the excise tax is a real limitation on the industry that prevents some companies from flourishing. His organization helps support the industry in Nova Scotia, and he has seen companies struggling and some shut down due to the tax.
“It’s a stranglehold,” he said. “It’s like a foot on your throat. It’s really hard to be able to swim when you’ve got that albatross on you.”
Singh sees hope in exports, which bypass the excise tax. He said markets like France and Germany could double or even triple exports out of Nova Scotia if they open up. “(The export market) is insatiable,” he said. “People fail to recognize how big (cannabis) is.”
~Eric Stober
Eric Stober is a Toronto-based freelance writer with over 10 years of experience at publications big and small, including Global News, Toronto Life, Real Estate Magazine,and Greencamp.
Featured image shows a cannabis-themed street fair in Prince George, BC.
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