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

Colorado’s average tariff rate rose from 3% to 21% last year, raising costs for key industries and risking $800 million in lost state revenue, the governor’s report found.

  • Thursday, Gov. Jared Polis released a 98-page report saying President Donald Trump's tariffs raised Colorado's effective rate from 3% to 21%, disrupting the economy and risking recession.
  • President Donald Trump has imposed a patchwork of tariffs including a 10% baseline tariff and 50% tariffs on steel, aluminum and copper, with new tariffs on about 90 countries taking effect last month.
  • The analysis flagged energy, agriculture, construction and aerospace as hardest hit, with agriculture losing 25% of exports and beef exports down nearly $80 million, costing 265 jobs.
  • Under the report's forecast, the Colorado general fund would lose $241.1 million this fiscal year and an escalated tariff schedule would cost $440 million this fiscal year and $805 million next fiscal year, while the Colorado unemployment rate could rise by 0.4% next year to 5%.
  • Colorado is part of a multistate lawsuit after an appeals court found most tariffs illegal, while analysts earlier this year 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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