Colorado braces for Trump tariff fallout
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Allie Carl/Axios
Colorado businesses, consumers and lawmakers are preparing for President Trump's new tariffs to significantly damage the state's economy.
The big picture: The tariffs target key trading partners and could raise consumer prices, disrupt business activity, and upend global trade, Axios' Courtenay Brown and Neil Irwin write.
- Stocks have seen a historic plunge, and China has already retaliated with a 34% tariff on all U.S. exports.
By the numbers: Colorado imported $17 billion and exported $10.5 billion in goods last year, per the Colorado Sun.
- The state depends heavily on trade with Canada, China and Mexico. Canada is Colorado's top trade partner, with the state importing $5.4 billion and exporting $1.6 billion in goods annually, according to the Colorado Chamber of Commerce.
State of play: The state's public companies lost about $44 billion in market value Friday, the Denver Post reports. And local business leaders are warning of further financial fallout.
- "Specifically for Colorado, which is already one of the most expensive states to live and do business, tariffs could seriously interfere with our work to improve competitiveness and the broader economy," Colorado Chamber president and CEO Loren Furman said in a statement.
Zoom in: Some of the state's biggest industries and businesses are feeling the pain.
- 👕 VF Corp., the Denver-based owner of The North Face and Vans, saw its stock nosedive nearly 29% Thursday — its worst day since 1987, per the Denver Post.
- 🤖 Shares of data software giant Palantir, Denver's largest public company, dropped by as much as 14% Friday.
- 🍺 Colorado's craft brewers — fourth most per capita in the U.S. — were already facing higher costs tied to 25% tariffs on steel and aluminum announced last month.
- 🚗 Auto dealers in the state saw a recent sales bump as buyers rushed to beat expected price hikes. But Fred Emich with Denver-area Emich Automotive told CPR tariffs will likely make business "very difficult" and "very unnerving" in the long term.
🌾 Plus: Farmers fear long-term damage ranging from pricier equipment and fertilizer to a drop in demand for exports.
- Ashley House with the Colorado Farm Bureau told CPR that Trump's tariffs trigger a "virulent near-term trade storm that immediately chips away at our competitiveness for Colorado-grown and, by extension, American products."
What they're saying: Colorado's Democratic leaders, including Gov. Jared Polis, call the tariffs deeply damaging and warn they'll raise the costs of everything from groceries to housing.
The other side: Trump allies in Colorado's congressional delegation — including Reps. Lauren Boebert (R-Windsor) and Gabe Evans (R-Thornton) — are backing the move, CPR reports.
- "I support President Trump's effort to level the playing field," Boebert said at a recent town hall.
What we're watching: Nationally, the tariffs could spike inflation by 2.3 percentage points this year, costing the average household $3,800, new estimates from the Yale Budget Lab show.
- Meanwhile, economists warn a global recession may be looming.