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Colorado Could Lose up to $800 Million over the Next 2 Years From Escalating Tariffs, Polis Says

Colorado's report links Trump's tariff policies to job losses, $800 million revenue decline, and a predicted recession in 2026-27 across key industries including agriculture and aerospace.

  • On Thursday, Colorado Governor Jared Polis released a 98-page report alleging President Donald Trump's tariff policy is disrupting Colorado's economy, predicting a 2026-2027 recession and $800 million revenue loss.
  • Since 2024, Colorado's tariffs have surged from 3% to 21%, with President Donald Trump's 10% baseline and 50% steel, aluminum, and copper levies prompting 30% tariffs from China and 39% from Switzerland.
  • The report found Colorado consumers face over $600 million in increased costs, the Colorado aerospace industry risks about $61 million in losses and 195 job cuts, and construction costs rise 4% to 6%, adding $30,000 to $45,000 to a $750,000 home.
  • The report projects Colorado's unemployment rate to rise by 0.4 percentage points to 5% in 2026, Colorado gross domestic product to drop from 1.6% to 0.6%, and Canadian tourists' summer bookings to fall about 55%, impacting 715,000 small businesses.
  • Colorado has joined legal action in a multistate lawsuit challenging President Donald Trump's tariff authority, while his appeal to the U.S. Supreme Court won't be heard until after next month's 2025-26 session; analysts recently estimated recession odds at about 50%.
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Colorado Newsline broke the news in on Thursday, September 4, 2025.
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