Business owners, economists discuss potential impact of Trump's tariffs on Coloradans

President Donald Trump says he's enacted tariffs on China, Mexico and Canada in order to ultimately help secure the northern and southern borders of the United States. This is also an effort to stop the flow of deadly fentanyl into the country and boost the American manufacturing industry. 

Despite current federal efforts, local business owners and economic experts gathered in Denver Tuesday to discuss the immediate and potentially harmful effects they says they could have on Coloradans. At the town hall event at the World Trade Center Denver, the tone was overwhelmingly negative.

According to new information from Trade Partnership Worldwide, Colorado could be impacted by the tune of $1.4 billion.

"Colorado obviously has to pay higher prices for consumers, higher cost for some producers, and that's why the international trade will shrink a little bit," said Kulkarni Kishore, a professor of economics at MSU Denver. "It could be higher than that too."

Small business owners like Jeremy Petersen, the owner of natural pet food company Identity Pet Nutrition, are bracing for the worst-case scenario.

"The worst situation is we'll be out of business along with hundreds of other small businesses across the United States," Petersen said. "We don't have huge sums of capital or easy access to capital to take a significant loss."

Canadian imports make up 30% of Colorado's total trade, but 100% of Jeremy Petersen's product.

"So basically 100% of our products are impacted by the Canadian tariffs," Petersen explained.

But for Petersen, the effects are felt beyond the basic economics. He believes the tariffs have hindered his business relationships.

"We've lost customers because of some of the animosity created by just the threats of tariffs, so it's already impacting us," Petersen said.

Another sentiment echoed by the panel was slowdown. Canada, Mexico and China accounted for nearly half of the state's total imports last year. The panel said something that affects an industry of that magnitude in Colorado shouldn't be rushed.  

Whether you're a business owner or economic expert on the panel, the belief was that, regardless of how long the tariffs last,  irreversible harm has already been caused.

"The damage has already been made," Kishore said. "The question is just how much, and it could get worse if we continue with this."