Tariffs Continue to Hamper the Economy, Increase Costs, Drive Up Inflation, Harm the Job Market

DENVER - Today, Governor Polis and the Office of State Planning a Budget (OSPB) released the Q3 economic forecast which showed that Trump's tariffs and escalating trade wars continue to raise costs, worsen household finances, harm the job market, and slow growth.

"Today's forecast again shows that the President's reckless tariff taxes are increasing costs on consumers, sabotaging our economy, tightening the job market, and driving up inflation. While Colorado is fairing better than the rest of the country with lower unemployment and stronger growth, hardworking families are being cornered to grapple with higher costs, forcing them to make hard personal budget decisions at the dining room table. This forecast is clear, Coloradans are paying the cost for Trump's tariffs and Republicans' Washington politics," said Governor Polis.

Revenue is expected to drop below the TABOR cap in FY26 due to the impacts of H.R.1, with a return above the TABOR cap later in the forecast period. However, based on current projections low revenue growth will eliminate the Family Affordability and Earned Income Tax Credits in Tax Year 2026, but these credits are expected to return in Tax Year 2027. Opportunity Now Tax Credits funded through HB24-1365 will be cut in half for Tax Year 2026.

OSPB currently projects TABOR surpluses of $363.9 million and $721.1 million in FY2026-27 and FY2027-28 respectively. OSPB projects a 13.6% reserve in FY2025-26 thanks to actions taken during the special legislative session, executive actions, and updated forecast projections.

View the forecast, slides, and supplemental materials, or visit www.colorado.gov/governor/economics

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