Colorado caught in the crosshairs of U.S.-China trade war
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President Trump paused most reciprocal tariffs for 90 days — but doubled down on China by raising export tariffs to 125%, delivering a fresh blow to Colorado businesses.
The big picture: Both companies and consumers in the Centennial State will still feel the financial squeeze as costs inevitably pass through the supply chain.
By the numbers: China is Colorado's second-largest import source, providing $1.8 billion in goods (11% of the state's total) in 2024, according to the U.S. Census Bureau.
- When Trump put a 20% tariff on China earlier this year, economic research firm Trade Partnership Worldwide estimated it would cost Colorado businesses $362 million annually.
- At 125%, those costs will multiply dramatically.
State of play: The tariffs are creating immediate challenges for prominent Colorado businesses.
What they're saying: American Furniture Warehouse CEO Jake Jabs — a longtime GOP megadonor — imports furniture from China and sees little upside.
- "To me, it's just a lose-lose deal," he told CPR, adding that Trump is "going to make enemies out of what are now our friends and open the door for China to become friends with these people."
- Sunny Kim, owner of Denver-based American Made Apparel Manufacturing, sources materials from China. Even before the 125% hike, the tariffs were "detrimental" to her profit margins.
- "It's almost impossible to keep everything U.S.-made," Kim told MSNBC, citing materials and labor-intensive processes American factories can't match at affordable price points. "For us to get up to the point of manufacturing at the same level and capacity as China ... is impossible."
Zoom out: Colorado's agricultural sector is particularly vulnerable, if history is any indication.
- During Trump's first term, his China trade war resulted in a $27 billion loss in agricultural exports over that period, according to estimates from U.S. Department of Agriculture economists.
The bottom line: Despite Wednesday's temporary pause on reciprocal tariffs, the universal 10% tariff on nearly all U.S. trade partners remains in effect — a policy economists warn could still rattle trade-dependent states like Colorado.