Opinion: Recent round of tariffs on our neighbors puts Colorado at risk of economic slowdown

As Colorado state treasurer, my main job is to safeguard our tax dollars and ensure the long-term economic prosperity of our state. My office carefully manages Colorado’s cash flow and an investment portfolio of approximately $17 billion — a delicate balance that allows us to fund state programs and services while reducing the burden on Colorado’s taxpayers.

This mission requires slow, steady and smart investing. Unlike a private business, we cannot afford to take big losses or “move fast and break things.” But that’s exactly what President Trump is doing by slapping tariffs on Mexico. Left unchecked, this misguided trade policy will have damaging consequences not just for our state, but for the entire country. 

At $2.8 billion, Colorado trades more with Mexico, our third-largest trading partner, than the U.S. trades with some countries. Over the past five years alone, we have imported around $1 billion in goods annually from our neighbors to the south. This includes things you use every day — computer and electronic equipment, vehicle parts, household appliances like refrigerators and microwaves and the other essential items that keep our economy humming.

Colorado stands to lose even more on exports, which have surged by 80% over the past decade. Mexico is now Colorado’s leading export market, overtaking Canada. Key exports include beef, aerospace components, semiconductors and power transmission equipment.

A tariff war would cripple some of our state’s cornerstone industries: agriculture, aerospace and advanced manufacturing. In Greeley, where I’m from, oil and gas, meatpacking and agriculture, will all be impacted. JBS Swift & Company employs about 4,200 workers in Weld County, and oil and gas companies like Halliburton, Noble Energy and Anadarko Petroleum hire thousands more. In fact, as many as 97,000 jobs are tied to trade with Mexico, putting families at risk.

Increased tariffs act as a tax on consumers, reducing their spending power and tanking our state budget that is already projecting a $1.2 billion shortfall. Less revenue will require deep cuts to behavioral health programs, public schools, higher education and other essential programs — services that Coloradans depend on and desperately need. I know this firsthand: My sister, who is developmentally disabled, relies on Medicaid for life-sustaining care.

The chaos created by these policies, whether real or perceived, also discourages investment. This makes it harder to finance critical projects, like affordable housing and wastewater systems, that keep us competitive. Further delays will only add to our state’s massive infrastructure problem — a backlog valued at $100 billion by my estimate. School infrastructure needs are projected at $20 billion alone; throw in lead pipe replacement, transportation upgrades and other deferred maintenance, and the list adds up quickly. To confront these challenges, we urgently need more investment, not less. 

I will not stand idly by while federal policies risk jeopardizing our future. We cannot withstand the destruction of our vital trade relationship with Mexico. These tariffs would trigger devastating job losses, inflated prices, reduced state services and economic stagnation — forces that may shatter Colorado’s vibrant economy. I denounce this reckless agenda and call on fellow state leaders to join me. 

I also pledge to help families weather the coming storm. Under my leadership, our department has rolled out several initiatives designed to shore up Coloradans’ financial stability during volatile times like these. 

Our expanded Property Tax Deferral Program, for example, provides housing security for homeowners so they don’t have to choose between tax payments and medicine. The CLIMBER Loan Fund can be a lifeline for small businesses struggling to hire workers or keep the lights on. Our Colorado SecureSavings Program, which just surpassed $100 million in retirement savings, is helping 72,000 workers and counting become more resilient to future shocks. 

And we are currently helping guide Senate Bill 81 through the Colorado legislature to effectively address that $100 billion infrastructure backlog. 

Everything we do at the Colorado Department of the Treasury is designed to help Coloradans — and the state — remain financially stable and prepared through chaotic times. As state treasurer, I have been proud to put your economic interests first. I wish I could say the same for our president. 

Dave Young, of Greeley, was elected state treasurer in 2018 and reelected in 2022; he served in the Colorado House of Representatives from 2011-19.

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