Colorado Politics

Trump’s tariffs prompt Blue state governors, including Colorado, to develop mitigation strategies

The governors of Colorado, Illinois, New York, Oregon and Washington called on their state agencies on Monday to find ways to mitigate the harm caused by President Trump’s tariffs.

In Colorado, Gov. Jared Polis issued an executive order that directs the Office of State Planning and Budgeting to come up with a report within 45 days that would estimate the impact of the tariff burden.

The executive order should focus on “specific vulnerable geographies and sectoral impacts, including housing construction, especially where those impacts are acute and particularly harmful to Colorado companies and consumers,” the order stated.

In addition, the departments of agriculture, labor and employment and Office of Economic Development and International Trade are to come up with plans on how to adapt state services and programs to the U.S. tariff policy.

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OEDIT is also charged with creating a “Colorado Tariff Burden Reduction Task Force” to help state agencies develop strategies to “reduce the impacts of US Tariff Policy and combat tariff uncertainty across different sectors of Colorado’s economy.”

The executive order noted that since taking office in January, Trump has imposed tariffs as high as 145% on major trading partners. That included new tariffs last week on the European Union countries and Mexico of 30%.

The tariff policy and resulting trade war have had a damaging effect on Colorado’s healthcare, fuel, agriculture, food processing, electrical and computer goods, and all other facets of the state’s manufacturing base, according to a statement from the Polis administration. Tariffs also increase costs for roads, schools and construction.

The statement noted that Mexico and Canada are Colorado’s largest trading partners. Colorado exported $1.7 billion in goods to Mexico in 2024, representing 17% of the state’s total goods exports, followed by Canada at $1.6 billion. Colorado’s largest exports to Mexico are beef products.

In Illinois, Gov. JB Pritzker’s executive order directs state agencies to evaluate the scale and impact of the tariffs and how they impact key economic sectors, including food, public health, infrastructure, and emergency preparedness supplies.

Washington Gov. Bob Ferguson led a coalition of 24 public and private partners to file an amicus brief in May, supporting a multistate lawsuit to block the Trump Administration’s illegal tariffs. That brief includes 12 other states, including Colorado.

“Governors know these senseless tariffs are causing costs to go up on everything from groceries to clothes and making business investment more and more uncertain,” Polis said Monday. “Together, we are taking action to help reduce the impact of the President’s tariff madness on states, businesses and economies.”

A news release from Pritzker noted a report from the Yale Budget Lab that said tariffs will increase household costs by more than $4,000 per year.

It also noted that tariffs are projected to cost the United States $29 billion in tourism, “which negatively affects jobs in hospitality, retail, travel, and more. In addition, tariffs hurt small businesses by raising the cost of materials, goods, and services. They can trigger supply chain disruptions that can be disastrous, especially for small businesses operating on narrow margins.”

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