Federal Crackdown Shakes Up Hemp Industry: Tilray Brands, Small Businesses Brace for Impact

The cannabis industry is facing a major shakeup following the recent federal crackdown on hemp products. Just this week, the new Continuing Appropriations and Extensions Act, signed into law on November 12, 2025, has fundamentally changed the legal landscape for hemp. The law limits THC in edible and beverage products to just 0.4 milligrams, which industry experts say will effectively ban over 95 percent of hemp products currently on the market. This is a sharp reversal from the 2018 Farm Bill, which had opened up opportunities for hemp-based businesses. Major companies like Tilray Brands are feeling the impact. Tilray, which has positioned itself as a leader in the hemp space, has publicly condemned the new restrictions. The company recently announced that while hemp products do not make up a material part of its business, the move puts future growth plans in the U.S. under serious uncertainty. Tilray’s stock has dropped nearly 37 percent in the past month, reflecting investor concerns. Small businesses are also scrambling. In Minnesota, hemp-based drinks and edibles have been booming, with the industry supporting 2,700 jobs and generating $16 million in state taxes through the first nine months of 2025. But with the new law set to take effect in November 2026, lawmakers and business owners are pushing for a reversal. A bipartisan coalition, including Senator Amy Klobuchar and Congressman Tom Emmer, is working to overturn the ban, arguing that it threatens jobs and consumer choice. Wisconsin lawmakers have also introduced three bills to counter the federal ban, showing how states are stepping in to protect their local industries. Meanwhile, consumer behavior is shifting as people stock up on higher-THC hemp products before the restrictions hit. Overall, the industry is bracing for significant disruption, with layoffs and market contraction expected unless new legislation is passed. The situation is a stark contrast to just a year ago, when hemp was seen as a major growth opportunity for cannabis companies. For great deals today, check out https://amzn.to/44ci4hQ This content was created in partnership and with the help of Artificial Intelligence AI.