Gabe Evans: Trump’s Tariffs Were Predicted To Increase Costs For Coloradans And Trigger Higher Inflation

The Estimated Effective Tariff Rate In Colorado Increased From 3% In 2024 To 21% In 2025 Under Trump’s Tariff Policy

Colorado Governor’s Office Of State Planning And Budgeting: Estimated Effective Tariff Rate In Colorado Increased From 3% In 2024 To 21% In 2025 Under Trump’s Tariff Policy. “OSPB finds that increased tariffs will likely lead to worse economic outcomes for both the U.S. and Colorado. Under current tariffs imposed by the Trump administration as of August 12, 2025, the effective tariff rate in Colorado has increased sevenfold since last year. In 2024, the estimated effective tariff rate in Colorado was 3.0 percent, and it has now increased to 21.0 percent following broad-based tariff implementation from the federal administration on certain nations and products. The U.S. estimated effective tariff rate has increased from 2.6 percent in 2024 to 20.7 percent. To understand how high the currently implemented tariffs are, the last time they exceeded the current effective levels was over a century ago in 1910. This stark change in American trade policy can be likened to an economic shock to global trade and will lead to American and Coloradan businesses and consumers paying more for every-day goods due to higher inflation.” [State of Colorado, Governor’s Office of State Planning & Budgeting, Page 4, 9/4/25]

Tariffs On Durable Goods, Such As Automobiles And Household Appliances, Were Expected To Cause Up To $600 Million In Additional Costs To Colorado Consumers

Tariffs On Durable Goods, Such As Automobiles And Household Appliances, Were Expected To Cause Up To $600 Million In Additional Costs To Colorado Consumers. “Durable and Nondurable Goods: The durable and nondurable goods sector in Colorado provides over 500,000 jobs in the state and contributes $82 billion toward state GDP. This sector also comprises 19 percent of total Colorado imports at $3.1 billion. One of the more acute impacts of tariffs are seen within durable goods as an estimated one-third of durable goods, such as automobiles and household appliances, are imported to the United States. OSPB estimates that the impact of tariffs on durable and nondurable goods in the state will result in up to $600 million in additional costs to Colorado consumers.” [State of Colorado, Governor’s Office of State Planning & Budgeting, Page 6, 9/4/25]

Tariffs Contributed To Higher Prices For Apparel, Furniture And Other Goods Where The U.S. Is Heavily Reliant On Imports

NPR: Tariffs Contributed To “Higher Prices For Apparel, Furniture And Other Goods Where The U.S. Is Heavily Reliant On Imports.” “Tariffs have already contributed to higher prices for apparel, furniture and other goods where the U.S. is heavily reliant on imports. Inflation has been inching up in recent months, although it's still nowhere near the 9% level it reached three years ago, in the wake of the pandemic and Russia's invasion of Ukraine. Annual inflation in September was 3%, compared to 2.3% in April when Trump first announced his worldwide tariffs.” [NPR, 11/5/25]

Inflation Was Predicted To Increase In 2026 As A Result Of Trump’s Tariff Policy

Trump’s Tariff Policy Was “Expected To Result In Re-Inflation In 2025, With Peak Year-Over-Year Inflation In 2026 That Is A Drag On The National And Local Economies.” “Inflation is significantly impacted by tariff policy, because tariffs are an additional cost imposed on goods. Tariffs have a direct cost increase on the specific goods that have tariffs levied against them, but tariffs can also have significant indirect or knock-on effects on the prices of other goods and services throughout the economy. While the 2024 Tariff Scenario would likely lead to the U.S. continuing on a disinflationary path to the Federal Reserve’s target of two percent, the Current and Escalatory Tariff Scenarios are expected to result in re-inflation in 2025, with peak year-over-year inflation in 2026 that is a drag on the national and local economies.” [State of Colorado, Governor’s Office of State Planning & Budgeting, Page 5, 9/4/25]