Overview
- The governor’s Office of State Planning and Budgeting says Colorado’s effective tariff rate jumped from about 3% last year to roughly 21% under current federal measures, with risk rising to about 25.5% if further duties take effect.
- State economists forecast retail sales declines over the next three years, softer job growth and higher unemployment as tariffs weigh on consumer demand and business investment.
- General fund revenue is projected to fall by $241.1 million this fiscal year in the current tariff scenario, with losses modeled at $440 million this year and $805 million next year if tariffs escalate.
- Officials report more than 20% of tariff costs are already reaching consumers, a burden expected to increase as inventories turn over, while high rates on metals and vehicles strain construction, housing and manufacturing.
- Small firms describe real-time disruptions, including delayed product launches and staffing cuts, and Colorado’s legal challenge to the federal tariffs could reach the U.S. Supreme Court as soon as next month.