DENVER — For business owners in Colorado, there can already be enough challenges to navigate, but now many are left facing the potential impacts new tariffs will bring.
President Donald Trump announced on Saturday that 30% tariffs would be imposed on Mexico and the European Union for their imports, starting August 1.
Trump detailed the planned tariffs in letters posted to his social media account. They are part of an announcement blitz by Trump of new tariffs aimed at allies and foes alike, a bedrock of his 2024 campaign that he said would set the foundation for reviving a U.S. economy that he claims has been ripped off by other nations for decades.
Josh Robinson, a fourth-generation owner of Argonaut Wine and Liquor, shared that the company sells a wide variety of products from outside the country, which the tariffs would target.
"It could be close to 40-50% of our inventory, that might be from those countries that are getting it. It would be terrible, so it's going to have a wide impact," Robinson said.
As people walk throughout the store to pick out their desired items, many can look up at the signs to figure out the different areas where these products come from. Robinson explained that these new tariffs could impact products like tequila and beers from Mexico, as well as wines from Italy, Spain, and France.
"It will definitely impact consumer choice, it will impact, what you're paying and our business, we're fighting harder for every dollar, because people are, you know, on less disposable income now it matters and it's going to impact our business in a lot of different ways," Robinson said.
Talulah Jones is another business concerned about the future tariffs that could have on their goods. Robin Lohre, the owner, explained that the store has been around for over 24 years and has kept up with different needs and trends over the years.
"We have a lot of European lines. We have lines from China. We have a few things from the United States; there are not a lot of toys made in the United States," Lohre said.
Inside the shelves of the store are filled with a rainbow of items, including candies, toys, and games from all over the world. The news of the tariffs brings immense concern to Lohre, who is worried it will change prices and impact customers.
"If my costs go up, I have to pass it on to you," said Lohre. "My profit margin is actually very low. I have a very small profit margin to offer the kind of the breadth of what I offer. It's very labor-intensive, and so we can't absorb it, it's not possible, and so a lot of small businesses will probably shutter."
Over the years, Lohre has handled the different challenges that come with running a small business. However, she is now left praying and hoping the local neighborhood spot can continue.
"I've weathered a lot of storms in this," said Lohre. I've weathered online shopping. I've weathered recessions, I've weathered Covid, I've weathered so many storms, and I continue to thrive. This one, this one I may not, and I've worked hard."
Governor Jared Polis shared his thoughts on this news and how it would directly impact Coloradans, both consumers and businesses. He shared his concerns about manufacturers being less likely to locate and invest in the United States and here in Colorado.
"So, it raises the price on so many materials that go into almost everything we do," said Polis. "Groceries at the grocery store, things we can't grow here in Colorado, bad for consumers, and then, of course, as companies are looking to invest in larger factories and manufacturing, they're going to do it in other countries to avoid those tariffs going in and going out."
Besides the impact this would have on the manufacturing and agricultural industries, Polis also explained that these tariffs would impact other areas, including the aluminum industry, the cost of items at the grocery store, and Colorado tourism.
"We have a lot of tourism and trade with Canada, Mexico, and the E.U., and that's something that's made Colorado prosperous. It's made Colorado a great economy, a great place to live, and so, like other states that are trade-dependent, of course, it's going to hurt," Polis said.
Currently, Polis shared the work he is doing moving forward. He said, "Keeping our international ties close, reassuring our folks in other countries that we will get through this and America is still a good place to invest despite the policies of our current president. At the same time, making sure that we can keep Colorado competitive, reduce the regulatory burden, keep taxes low, and encourage economic activity here in our great state."
The Associated Press contributed to this story
