Colorado Braces for Tariff Fallout as Businesses Face Rising Costs

Colorado’s exporters and manufacturers are entering an uncertain period. The reintroduction of broad U.S. tariffs on foreign goods — a hallmark of the Trump administration’s trade policy — is once again shaping the state’s economic landscape. While the goal is to protect American industries from overseas competition, the reality for many Colorado companies is rising costs, disrupted supply chains, and fragile confidence in global markets.

Recent months have seen both optimism and anxiety. On one hand, total Colorado exports rose 10.5% in early 2025, suggesting resilience. On the other, tariffs are driving up prices for critical inputs, and retaliation from trade partners threatens access to lucrative markets. The fallout is particularly acute for manufacturers, farmers, and small businesses already stretched thin by inflation and global uncertainty.

This article explores how tariff policies are affecting Colorado businesses, what industry leaders are saying, and what exporters in the Rocky Mountain District can do to adapt.

In April 2025, new tariff measures were rolled out targeting imports from China, Europe, and other trading partners. These tariffs, ranging from 10% to 25% on goods such as steel, aluminum, machinery, and electronics, were designed to encourage domestic production. But for Colorado, a state deeply integrated into global supply chains, the effects are mixed at best.

• Manufacturers are paying more for imported parts. Companies like Denver-based Geotech Environmental Equipment, which produces U.S.-made water testing equipment, rely on imported components. Despite assembling products domestically, the firm faces higher costs due to tariffs on specialty parts sourced abroad (CPR News, Aug 2025).
  
  
• Agriculture faces retaliatory measures. Colorado’s beef, grain, and dairy exports are vulnerable to foreign tariffs. China, for instance, responded to U.S. policy with new restrictions on American agricultural products, squeezing ranchers and farmers.
  
  
• Export competitiveness is eroding. When input costs rise at home and foreign buyers impose counter-tariffs, Colorado exporters struggle to keep pricing competitive in global markets.
  
  

Chris Stiffler, an economist at the Colorado Fiscal Institute, summed it up in an Axios Denver interview: “Tariffs may protect certain industries in theory, but for many Colorado businesses, they increase costs without providing real relief.”

Colorado’s manufacturing sector — from aerospace parts to precision instruments — is particularly exposed to tariff disruptions.

Take the case of Geotech Environmental Equipment, highlighted by CPR News. The company assembles products in Denver but imports specialized electronics that aren’t available domestically. With tariffs applied even to these niche parts, costs are rising by double digits. “We’re being penalized for making things in the U.S.,” said CEO Stephanie Miller.

Other manufacturers, including aerospace suppliers in Colorado Springs and Boulder, report similar challenges. These firms serve international markets where competition is fierce. If production costs climb too high, buyers may turn to suppliers in Europe or Asia.

Colorado’s agricultural exports tell another side of the story. In 2024, beef and grain exports surged, partly due to increased Chinese demand. But the tide turned in 2025 as tariffs and political tensions escalated.

• Beef exports to China dropped sharply. Ranchers in Northern Colorado who had expanded herds to meet Chinese demand now face declining orders.
  
  
• Grain shipments are under pressure. Retaliatory tariffs on wheat and corn make U.S. crops more expensive overseas, even as global competition from Brazil and Australia intensifies.
  
  
• Dairy producers are squeezed. Rising feed costs, combined with reduced foreign demand, have left margins razor-thin.
  
  

The Colorado Department of Agriculture has warned that ongoing trade tensions could cut farm revenues significantly if markets don’t stabilize soon.

Tariff policies don’t just affect exporters. Small businesses that import goods for resale — from craft breweries sourcing equipment to retailers buying foreign-made textiles — also face rising costs. Many are forced to either absorb the increases, cut staff, or pass prices on to consumers.

For exporters in Wyoming, where soda ash and trona are top commodities, tariff impacts are somewhat different. While soda ash exports remain strong, global uncertainty creates pricing volatility that complicates long-term planning.

Economists emphasize that tariffs act like a tax on trade. While they may boost certain industries in the short term, they inject uncertainty into the market. Business leaders are hesitant to invest in new facilities or expand production when trade rules can change overnight.

In Colorado, this uncertainty has slowed capital investment in sectors like renewable energy manufacturing and advanced technology exports. Some companies are holding off on hiring or expansion until tariff negotiations show clearer outcomes.

Despite the challenges, exporters in the Rocky Mountain District can take proactive steps to adapt:

1. Diversify supply chains. Look for alternative suppliers in tariff-free countries or explore reshoring opportunities where feasible.
   
2. Leverage trade assistance programs. Organizations like the U.S. Commercial Service and Rocky Mountain District Export Assistance Center offer support with export promotion, compliance, and financing.
   
3. Target new markets. With China imposing barriers, opportunities in Southeast Asia, Latin America, and Europe are increasingly important.
   
4. Invest in value-added products. Branding, sustainability certifications, and product innovation can help justify higher prices.
5. Engage in policy advocacy. Industry associations can amplify exporters’ concerns, pushing for more favourable trade terms at the federal level.

The coming months will test Colorado’s exporters. While the state’s economy shows resilience, the tariff environment adds pressure that could erode recent gains. For businesses already operating on thin margins, the combination of higher input costs and reduced foreign demand is especially challenging.

Still, there are reasons for cautious optimism. Colorado’s diversified economy, innovative industries, and strong trade links with North America and Europe provide a buffer. If exporters adapt quickly and policymakers pursue balanced trade strategies, the state can navigate the turbulence.

For now, though, exporters must brace for continued volatility — and find ways to turn challenges into opportunities.

• Axios Denver – April 4, 2025
  https://www.axios.com/local/denver/2025/04/04/trump-tariffs-impact-colorado-economy
• CPR News – Aug 1, 2025
  https://www.cpr.org/2025/08/01/colorado-company-usa-manufacturing-tariffs
• Colorado Fiscal Institute – 2025 Policy Analysis
  https://coloradofiscal.org/trumps-tariff-policies-will-have-ripple-effects-in-colorado