Xebra Brands (CSE:XBRA), the only company authorized to import seeds, cultivate, manufacture and sell cannabis in Mexico, expects to carry on with its North American growth strategy as planned, despite U.S. tariff pressures and global equity volatility.
In Tuesday’s news release, the company notes that it is exempt from the universal 10 per cent tariff imposed by U.S. President Donald Trump because its products fall under the United States-Mexico-Canada Agreement (USMCA), which Trump has ratified.
Xebra expects the exemption to result in operational and cost stability for the sector, which may explain why, despite tariff headwinds and fears of inflation and recession, “North American cannabis-related equities have shown relative resilience, supported by investor optimism around domestic supply chain integration and regulatory tailwinds,” the news release continues.
The next step in Xebra’s growth strategy is an agricultural agreement, currently under negotiation with David Ross Macias Diaz, its largest shareholder, to use Diaz’s land in Mexico for cannabis cultivation under the company’s exclusive federal authorization. The agreement will be the first of its kind under Mexico’s federal cannabis law.
Xebra is also advancing its agreement with BSK to grow its e-commerce presence in Mexico and streamline U.S. entry for its Elements product line, furthering its goal of capitalizing on the integrated North American market.
Leadership insights
“Recent tariff clarity, coupled with broader market volatility, only reinforces our conviction in the North American strategy,” Rodrigo Gallardo, interim chief executive officer of Xebra Brands, said in a statement. “As global markets react to economic uncertainty, our foundation within the USMCA framework offers both security and opportunity. We’re strategically positioned to leverage that advantage across our operations.”
About Xebra Brands
Xebra Brands is a cannabis company with a first-mover advantage in the Mexican market.
Xebra Brands stock (CSE:XBRA) is unchanged trading at C$0.08 per share as of 9:50 am ET. The stock has given back 33.33 per cent year-over-year and over 87 per cent since 2021.
