The governor of Colorado, Jared Polis, disclosed a distressing analysis from the Office of State Planning and Budgeting (OSPB), which shows the substantial burden President Trump's tariff tax is placing on Colorado families and businesses. The report, compelled by Executive Order D 2025 008, reveals that these tariffs have nudged costs upwards for nearly all sectors of the state’s economy, possibly jeopardizing state revenues crucial for funding education, housing, and health care. "This detailed report makes clear what Colorado families are already feeling: Trump’s tariffs are a tax on hardworking people and businesses that hurts our economy and state," Governor Polis stated, as per the Colorado Governor's Office.
The report indicates an alarming escalation in Colorado's effective tariff rate, which had soared to 21 percent in 2025 from only 3 percent a year prior, marking the sharpest increase in over a hundred years. These tariffs mean families in Colorado, paying more for basics like groceries, healthcare, and educational supplies, must reach deeper into their pockets. With the threat of further escalations, a recession looms overhead and could carve as much as $805 million from the state's revenue streams by FY26-27, a dire forecast that schools and healthcare services will ill-afford.
Essential industries are feeling the heat, with agriculture, aerospace, energy, healthcare, construction, and advanced manufacturing taking the hardest hits. Together, these sectors form the backbone of Colorado's economy and labor force. Costs of construction likewise surge due to pricier steel, aluminum, and lumber. Colorado's renewable energy sector and utility providers are also facing the squeeze, with cost upturns expected to trickle down to consumers. According to the OSPB Director, Mark Ferrandino, "tariffs are driving up costs across nearly every part of Colorado’s economy, from construction materials to medical equipment, while simultaneously reducing state revenues that fund schools and services," as obtained by the Colorado Governor's Office.
Earlier this year, Polis took his grievances to the courts, filing a lawsuit alongside 12 other states against the Trump Administration's 'reckless and illegal tariff policies.' A favorable ruling by the US Court of Appeals for the Federal Circuit in August found Trump's maneuvers under the federal economic emergency laws to be illegal. However, President Trump has appealed the decision to the Supreme Court. Governor Polis affirmed that Colorado would maintain its stance against Trump’s high tariffs, adversely impacting businesses and consumers in the state.
