DENVER - Today, following up on a report by the Office of State Planning and Budget, Governor Jared Polis released a coordinated report from the Colorado Office of Economic Development and International Trade (OEDIT), the Colorado Department of Agriculture (CDA), and the Colorado Department of Labor and Employment (CDLE), providing the most detailed look yet at the wide-ranging impacts of President Trump’s reckless tariff policies on Colorado’s economy. The new report, as directed by the Governor’s Executive Order D 2025 008, shows that federal tariffs are operating as a direct tax on Colorado businesses, farmers, ranchers, and consumers, creating uncertainty in key industries and risking long-term economic harm.
“This report confirms what businesses, ranchers, and families across Colorado have been experiencing for months: Trump’s tariffs are a costly tax. Businesses are being forced to pass along higher costs, farmers are facing unpredictable markets, and the very people building Colorado’s economy are paying more because of the President’s misguided trade war. Colorado will keep fighting to expand overseas markets for made-in-Colorado and grown-in-Colorado products,” said Governor Polis.
OEDIT, CDLE and CDA found overwhelming evidence that tariffs are disrupting business planning, increasing operating costs, straining supply chains, and creating market uncertainty that reaches from construction sites to farm fields. Findings from the report show:
- Tariffs are viewed negatively by Colorado businesses, with “challenges” accounting for 86% of the impact compared to 14% for “benefits.”
- 80% of agricultural respondents anticipate future negative impacts from tariffs, including pricing increases, sourcing difficulties, and delivery delays.
- 50% of agricultural respondents cite specific price impacts, including price increases on aluminum, steel, copper, equipment, fertilizer, and “catch-all” tariff charges added to purchases, which have a trickle-down impact.
Tariffs Are a Tax on Colorado Businesses
OEDIT’s interviews with Colorado employers across construction, technology, retail, bioscience, energy, and manufacturing found that tariffs are siphoning funds away from research, innovation, hiring, and wages. Of all the challenges that tariffs impose on businesses, the financial and cost challenges associated with them were reported to be the top concern. This result highlights the direct monetary harm of tariffs, which includes tariff payments on imports, warehousing, and increased personnel costs, as well as the diversion of funds from key areas such as R&D. Furthermore, tariffs have created uncertainty, planning issues, and delays in investments due to the unpredictable nature of these policies, which make strategic long-term planning difficult. Business leaders’ level of confidence in their ability to plan plummeted from 8.7/10 (before tariffs) to 2.4/10 (after tariffs), one of the largest loss margins in the survey. Small businesses — already operating with thin margins — reported the greatest pain, facing “agonizing choices” between cutting salaries, delaying investment, or closing altogether.
Agriculture Is Experiencing Volatile Markets, Higher Costs, and Supply Chain Turbulence
CDA’s findings show that farmers and ranchers are facing higher equipment, fertilizer, and packaging costs; ongoing shipping delays; and unpredictable access to key global markets. Data shows that since 2020, national fertilizer costs have increased 37%, seed costs 18%, and fuel and oil costs 32%; additionally, labor costs have increased by almost 50% since 2020. Commodity prices are swinging, with beef hitting record highs while grain prices fall to historic lows, creating instability across rural communities. In the San Luis Valley, where Governor Polis helped open exports into Mexico for Colorado’s potato growers, the cost of production of potatoes has hovered from $8.00 to $11.00 per hundredweight (cwt) with return pricing hovering from $5.00 to $6.00 per cwt. With a crop circle of potatoes usually yielding 50,000 cwt, and a loss of $3.00 per cwt, farmers are losing an estimated $150,000 per circle thanks to the instability tariffs have brought. Producers also raised alarm about the upcoming 2026 U.S.–Mexico–Canada Agreement (USMCA) review, uncertainty around future exports to Japan and South Korea, retaliatory trade actions from China, and the incoming wave of Argentinian beef that will flood the American market and hurt domestic ranchers.
Colorado Is Taking Action to Protect Workers and Prepare the Economy
Colorado is taking steps to protect workers and stabilize the economy at a time when federal decisions, including tariffs and H.R. 1, are creating significant uncertainty for businesses and the State’s budget. These federal actions are increasing costs, delaying private-sector investment, and constraining the revenue Colorado relies on to fund schools, public safety, and essential services. As businesses face higher operating costs and unpredictable markets, many are pausing hiring, reassessing expansion plans, or slowing capital projects—economic headwinds that compound the budget pressures outlined in the Governor’s balanced budget proposal.
To respond to these risks, CDLE has outlined a comprehensive plan to help workers, employers, and communities navigate the potential disruptions tied to rising business costs and delayed economic activity. The department is expanding:
- Colorado Rapid Response support for impacted workers and employers
- Layoff-prevention tools like Work Share
- Sector-specific outreach to ensure businesses know how to access state support
- Monitoring of UI claims and labor market data to track emerging risk areas
- UI system improvements to ensure fast processing should claims increase
These proactive steps help ensure Colorado can protect workers, maintain economic stability, and respond quickly to future disruptions while federal policy volatility continues to threaten business confidence and the State’s long-term budget outlook.
With the findings of this report in hand, Governor Polis underscored that shielding Colorado from the damaging effects of tariffs will be a central focus of the upcoming legislative session. As federal decisions continue to drive up costs, delay investment, and put pressure on the State budget, the Governor will partner with legislators to advance policies that stabilize Colorado’s economy, protect workers and producers, and ensure the State remains positioned for long-term growth despite unpredictable federal actions.
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