{"id":138491,"date":"2025-09-07T03:12:07","date_gmt":"2025-09-07T03:12:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/138491\/"},"modified":"2025-09-07T03:12:07","modified_gmt":"2025-09-07T03:12:07","slug":"tariffs-could-lead-to-worse-economic-outcomes-statewide","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/138491\/","title":{"rendered":"Tariffs could lead to worse economic outcomes statewide"},"content":{"rendered":"

Krimson Klover,<\/a> a high-end women\u2019s outdoor and lifestyle apparel company, isn\u2019t in danger of going out of business because of tariffs. But Gail Ross, chief operating officer, said the 37.5% tariff the Boulder company is paying on goods from China has created cash-flow issues that affect every aspect of the business.<\/p>\n

\u201cWhen you owe the government, call it a couple hundred thousand dollars that wasn\u2019t expected, suddenly you\u2019ve got to tighten up other places every which way you can,\u201d Ross said.<\/p>\n

A Thursday report from the Colorado Office of State Planning and Budgeting<\/a> says the tariffs have \u201calready increased costs across nearly every sector of Colorado\u2019s economy\u201d and has put fiscal pressure on an already strained state budget.<\/p>\n

In addition, the end of a tariff exemption on small shipments is adding extra strain for small-businesses owners and creating uncertainty for consumers, making imported goods more expensive.<\/p>\n

On July 14, Gov. Jared Polis signed an executive order<\/a> requiring specific state agencies to analyze the impacts related to changes in U.S. tariff policy, requiring that the OSPB produce a report \u201cestimating the impact of Colorado\u2019s tariff burden.\u201d<\/p>\n

Under current tariffs imposed by the Trump administration as of Aug. 12, the effective tariff rate in Colorado has increased sevenfold since last year, the report said.<\/p>\n

\u201cThis detailed report makes clear what Colorado families are already feeling: Trump\u2019s tariffs are a tax on hardworking people and businesses that hurts our economy and state,\u201d Polis said.<\/p>\n

\u201cFrom groceries to housing to health care, Coloradans are sadly paying more because of the president\u2019s reckless trade war.\u201d<\/p>\n

President Trump declared in April<\/a> that foreign trade and economic practices have created a national emergency.\u00a0He said he refuses to let the U.S. be \u201ctaken advantage of\u201d and that tariffs are necessary to ensure fair trade, protect American workers and reduce the trade deficit.<\/p>\n

In 2024, the estimated effective tariff rate in Colorado was 3%, and it has now increased to 21% following broad-based tariff implementation from the administration on certain nations and products.<\/p>\n

The U.S. estimated effective tariff rate has increased from 2.6% in 2024 to 20.7%.\u00a0The last time they exceeded the current effective levels was in 1910.<\/p>\n

Krimson Kover is scrutinizing planned photo shoots for their new lines of clothes and scaling back an overhaul of its website. Ross said the staff is asking, \u201cDo we need to buy a new computer today or can we hold off until 2026? Do we need to hire that person or can we hold off until 2026?\u201d\u00a0<\/p>\n

For now, the company and its suppliers have absorbed some of the economic hit from the tariffs. Before the increases, Krimson Klover paid a 7.5% tariff on imports from China, where about 60% of its products are made.<\/p>\n

Going forward, Ross said customers will likely bear more of the costs. \u201cYou can plan for tariffs. You can put them into your goods, but you need some notice.\u201d<\/p>\n

Increased tariffs are expected to hit some sectors and regions of Colorado\u2019s economy harder than others.<\/p>\n

Key industries such as agriculture, construction, automobiles, energy, health care, technology and advanced industries like aerospace and bioscience face the greatest risk from higher tariffs and the potential for retaliatory tariffs abroad.<\/p>\n

These sectors together make up nearly half of the state\u2019s economy and jobs, as well as 90% of the international trade conducted by Colorado businesses.<\/p>\n

The increase will also have an impact on the state\u2019s budget, affecting health care and human services, housing initiatives, school finance and K-12 education, transportation operations, capitol construction and unemployment insurance.<\/p>\n

The state\u2019s report warns that further tariff escalation could push the state into a recession and cost schools and health care as much as $805 million in revenue losses by fiscal year 2026-27.<\/p>\n

Among the Colorado companies most exposed to tariffs are clothing and shoe retailers, who import a large portion of the products they sell.<\/p>\n

Broomfield-based shoe retailer Crocs said earlier last month that it expects revenues to decline about 10% year-over-year in the third quarter and operating margins to shrink 170 basis points because of higher tariffs.<\/p>\n

Ball Corp., based in Broomfield, is also being hit hard by tariffs, because of the heavy reliance of its can-making division on aluminum, which has seen tariffs rise from 10% to 25% on imports.<\/p>\n

Management is estimating a $10 million drag on profit margins and is coping with material delivery problems. The tariffs are also likely to hamper output from the company\u2019s can plant in Monterrey, Mexico.<\/p>\n

Denver-based VF Corp., parent of Vans, Timberland and The North Face, said in its most recent earnings call that it expects to lose $60 million to $70 million in gross profits because of tariffs this year, and it has targeted cost-saving measures intending to save $300 million this year.<\/p>\n

The company isn\u2019t providing full-year guidance on its earnings outlook because of the high uncertainty from tariffs, which are expected to hit hardest in the coming quarters.<\/p>\n

\u2018It\u2019s costing us more\u2019<\/p>\n

For area business owners, the rising costs and tariffs are more than just figures on a page, they\u2019re a source of growing uncertainty and frustration affecting day-to-day operations<\/a> and long-term planning.<\/p>\n

Ina Gasich, who owns Revolte Goods<\/a>, a quirky shop packed with campy, spooky and oddball goods, said she experienced delays with a Halloween shipment of limited small-batch shirts from the United Kingdom, causing her to panic.<\/p>\n

Ultimately the shipment came through, however, Gasich said three of her lines from the UK, Spain and France recently canceled their shipments, which contained most of her shop\u2019s Halloween and holiday items.<\/p>\n

These orders were meant to replace previous ones that had been canceled because of tariff issues.<\/p>\n

\"InaIna Gasich, owner and curator of Revolte Goods, poses for a portrait at the boutique in Denver on Thursday, Sept. 4, 2025. (Photo by Hyoung Chang\/The Denver Post)<\/p>\n

She said she was aware that tariffs could change at any time because of the uncertainty revolved around them<\/a>, but something that was providing a bit of relief was the \u201cde minimis\u201d exemption, a customs law that would allow international shipments worth $800 or less to avoid tariffs.<\/p>\n

The exemption ended recently by an executive order from the Trump administration nearly two years earlier<\/a> than the deadline set in the tax cuts and spending bill approved by Congress.<\/p>\n

\u201cI\u2019m not going to be able to bring over all those cute little home decor things from France and Portugal now,\u201d Gasich said.<\/p>\n

Gasich said she\u2019s starting to see price shifts among products from several small U.S.-based artisan vendors that manufacture overseas, with home and holiday decor being affected the most.<\/p>\n

Despite the challenges, Gasich said she feels grateful for the support of her customers.<\/p>\n

\u201cIt\u2019s kind of like the Grinch that stole Christmas, right? Like every time the Grinch comes in and does something really mean and scary, like all the residents of Whoville, they get closer, they love harder, they take care of each other more, and that\u2019s kind of what we\u2019re seeing,\u201d she said.<\/p>\n

When Trump raised tariffs in his first term, Krimson Klover considered shifting its production to the U.S., but couldn\u2019t find the right fit. The company\u2019s volume was too small for one factory and another prospect couldn\u2019t produce the clothes quickly enough. Ross believes that bringing manufacturing back to this country will require more planning and more predictable industrial policies.<\/p>\n

Ross was grateful for an order in August that extended the detente in the U.S.-China trade war, but isn\u2019t sure how long the truce will hold. She said it could last the announced 90 days, or Trump could declare tomorrow that tariffs are going up again.<\/p>\n

Charlotte Elich opened her first store on South Pearl Street, a popular Denver shopping district, in 1977. She now has three stores, all named 5 Green Boxes: a boutique and a gift and home wares store on South Pearl and a store in Union Station in Lower Downtown. <\/p>\n

After decades of building a following , Elich isn\u2019t sure of the future of local retail. <\/p>\n

\u201cIt\u2019s costing us more to get goods,\u201d Elich said. \u201cI\u2019ve seen so far 10 and 15% increases.\u201d<\/p>\n

\"55 Green Boxes owner Charlotte Elich sorts postcards on a rack at the boutique in Denver on Thursday, Sept. 4, 2025. (Photo by Hyoung Chang\/The Denver Post)<\/p>\n

Elich\u2019s vendors buy from China, India, Peru and other places. She saidsome of her suppliers have absorbed some of the costs of the higher taxes, but doesn\u2019t expect that to continue for long. Her customers, not the exporting countries, will pay the price, Elich said.<\/p>\n

Colorado\u2019s top export destinations are Mexico, Canada, China, South Korea, Malaysia and Switzerland.\u00a0Meanwhile, the state\u2019s imports the most from Canada, China, Mexico, Switzerland, Taiwan and Vietnam.<\/p>\n

On April 10, The Post visited several stores such as World Market, GW Supermarket, and H Mart to check the prices of various imported goods, including produce, cheese, condiments, snacks and drinks, to track the effects of tariffs.<\/p>\n

On Sept. 2, Post staff returned to check if prices had changed. Products from countries such as Japan, China, Mexico and Canada saw modest but noticeable increases, though it\u2019s unclear if the hikes are related to recent trade policy.<\/p>\n

At World Market, Japan\u2019s Hello Kitty Original Ramune Soda and Hatakosen Watermelon Ramune Soda both rose from $2.49 to $2.79. Kasugai Gummy Candies, in both peach and grape flavors, went from $3.99 to $4.29.<\/p>\n

In China\u2019s section, Fanta Peach and Coca-Cola Strawberry drinks each rose from $3.29 to $3.49. Additionally, the country\u2019s Lay\u2019s Roasted Seaweed Chips Can, increased from $4.49 to $4.79.<\/p>\n

Canada\u2019s Dr. Oetker Mousse Mix went from $3.49 to $3.79, although the vanilla flavor is currently on sale for $2.84.<\/p>\n

Other price increases include:<\/p>\n

Dalmatia Fig Spread (Croatia): $5.49 to $5.99
\nThe Republic of Tea Cold Defender (USA): $12.99 to $13.99
\nIlly Dark Roast Coffee (Italy): $14.99 to $15.99
\nWorld Market Greek Extra Virgin Olive Oil (Greece): $12.99 to $13.99<\/p>\n

World Market did not respond to several requests for comment on tariff impacts on their products.<\/p>\n

At GW Supermarket, an Asian American supermarket chain that has a large selection of international goods, saw an increase in tomato prices. In April, the price was $1.49 per pound, now they are $2.39 per pound.<\/p>\n

\"ImportedImported aged hard cheese from Nicaragua displayed on the shelf at GW Supermarket, 12303 E Mississippi Ave, Aurora, CO, on April 10, 2025. (The Denver Post\/Jessica Alvarado Gamez)<\/p>\n

A selection of imported cheeses, which carried a $13.99 aged hard cheese from Nicaragua, were no longer found on shelves.<\/p>\n

At Asian supermarket chain H Mart, several produce items that appear to be imported from Mexico have experienced price increases. Carrots, which were previously priced at 98 cents per pound, are now $1.29 per pound.<\/p>\n

Chives, which were $3.98 per pound on a manager\u2019s special, have increased to $4.98 per pound, still under a manager\u2019s special. Persian cucumbers have also gone up in price, from $1.78 per pound to $1.99 per pound, while remaining on a manager\u2019s special.<\/p>\n

Get more business news by signing up for our Economy Now newsletter.<\/a><\/p>\n

\t\t\t