Expert speaks on local impact of tariffs
'If you don't make your product in America… under the Trump administration, you will pay a tariff and in some cases a rather large one,' said President Donald Trump.
The President's tariffs on imported goods from Canada and Mexico went into effect on Tuesday, March 5, and they are expected to impact businesses across the country and here Colorado Springs.
It's no secret that Colorado Springs is one of the fastest growing cities in the U.S., which means our region relies heavily on building materials.
'An area where I'm particularly concerned for the Pikes Peak region is building materials,' said Dr. Bill Craighead, the Head Director of the Economics Department at the University of Colorado Colorado Springs. 'Canada is a big source of lumber, so this will affect the market price of lumber, regardless of whether you're sourcing it from Canada or from the United States.'
Craighead said the average consumer will pay $1,500 to $2,000 more each year.
'It will definitely affect local auto dealers, that will affect prices at the lot, if you're looking to buy a car it will affect the availability of cars and affect the auto parts, too,' he said.
On Wednesday, President Trump gave a 30-day break for U.S. automakers from his new tariffs on Mexican and Canadian imports, despite previously saying the move would force companies like Ford and General Motors to bring production back to the states.
'Numerous car companies have announced that they will be building massive automobile plants in America with Honda just announcing a new plant in Indiana, one of the largest anywhere,' said President Trump.
Governor Jared Polis also joined the conversation on Tuesday.
'Tariffs are a weak threat because you're basically threatening to stab yourself and say, 'look unless you do something, I'm going to stab myself,' and, you know, often the countries are going to say, 'go ahead and stab yourself,' and it's not a great game of chicken that the President's playing here,' said Governor Polis.
The Governor's Office also released data from the Colorado Office of Economic Development and International Trade, which revealed that Canada and Mexico account for 38% of Colorado's imports and 34% of Colorado's exports.
'Tourism alone–200,000 people a year about–from each of those countries, come to Colorado,' said Governor Polis.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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