Colorado has created a new task force with a focus on understanding the impacts of the Trump administration’s tariffs.

Created in partnership with the Office of Economic Development and International Trade and other state agencies, Colorado Gov. Jared Polis issued an executive order on Monday aimed at identifying strategies to reduce the impacts of U.S. tariff policy on key industries through the creation of the Colorado Tariff Burden Reduction Task Force.

One of the responsibilities laid out by the Polis’ executive order is for the Governor’s Office of State Planning and Budgeting to produce a report estimating the impact of Colorado’s tariff burden within 45 days. The report “shall focus on specific vulnerable geographies and sectoral impacts, including housing construction,” as stated in the order.

The task force has 100 days to submit plans to the governor’s office explaining how the state will adapt services to meet needs caused by Trump’s tariff policies, which state leaders argue have perpetuated uncertainty for key industries in the state.

Nationwide, Trump’s active tariff policies — such as the 10% baseline tariff on most imports and 50% tariffs on steel and aluminum — contributed toward June’s 2.7% rise in inflation as businesses passed tariff costs onto consumers, according to reporting by The Hill.

More recently, President Donald Trump announced he would be imposing 30% tariffs against Mexico and the 27 countries making up the European Union. The president has also proposed imposing a 50% levy on copper imports and implementing tariffs on more than 20 trading partners, including Canada, South Korea and Japan, all ranging between 20% and 50%.

With more tariffs expected to arrive on Aug. 1, states across the country are looking for ways to lessen the impacts on businesses.

“Tariffs do not work, and we will continue to prove that what Americans and Coloradans need most is certainty and stability, not whiplash tariffs driving up the cost of groceries and goods,” Polis said in a written statement. 

Tariffs have translated to increasing costs for key Colorado industries like aerospace manufacturing, agriculture, pharmaceuticals and car manufacturing.

Mexico and Canada, both of which have 25% tariffs on most goods, are Colorado’s largest trading partners. In 2024, Colorado exported $1.7 billion in goods to Mexico and $1.6 billion to Canada, representing over 30% of the state’s total goods exports, according to a news release from the governor’s office.

Trump’s tariff policies have also deterred visitors from vacationing in the United States. The country is projected to lose $29 billion in tourism, according to a Forbes analysis. Summer bookings in Colorado have not been spared by the impacts.

The creation of the task force in Colorado is just one of many actions taken by governors across the country to “understand and mitigate” the impacts of Trump’s tariff policies in their states. According to a news release from Illinois, governors from states including Arizona, Oregon, New York and Washington have all launched some form of directive to protect their communities from price hikes and supply chain disruptions.

“Governors know these senseless tariffs are causing costs to go up on everything from groceries to clothes and making business investment more and more uncertain,” Polis said in a joint statement with Pritzker’s office.

Colorado has previously taken legal action against the Trump administration over its tariff policies. The Polis and Attorney General Phil Weiser joined 11 other Democratic-led states in suing the administration in April over Trump’s invocation of the International Emergency Economic Powers Act to implement 25% tariffs on imports from Canada and Mexico and a baseline 10% tariff on nearly all U.S. trading partners. The outcome of the legal battle is still pending.