DENVER — Krimson Klover, a high-end women’s outdoor and lifestyle apparel company, isn’t in danger of going out of business because of tariffs. But Gail Ross, chief operating officer, said the 37.5% tariff the Boulder company is paying on goods from China has created cash-flow issues that affect every aspect of the business.

“When you owe the government, call it a couple hundred thousand dollars that wasn’t expected, suddenly you’ve got to tighten up other places every which way you can,” Ross said.

A Thursday report from the Colorado Office of State Planning and Budgeting says the tariffs have “already increased costs across nearly every sector of Colorado’s economy” and has put fiscal pressure on an already strained state budget.

In addition, the end of a tariff exemption on small shipments is adding extra strain for small-businesses owners and creating uncertainty for consumers, making imported goods more expensive.

On July 14, Gov. Jared Polis signed an executive order requiring specific state agencies to analyze the effects related to changes in U.S. tariff policy, requiring that the OSPB produce a report “estimating the impact of Colorado’s tariff burden.”

Under current tariffs imposed by the Trump administration as of Aug. 12, the effective tariff rate in Colorado has increased sevenfold since last year, the report said.

“This detailed report makes clear what Colorado families are already feeling: Trump’s tariffs are a tax on hard-working people and businesses that hurts our economy and state,” Polis said.

“From groceries to housing to health care, Coloradans are sadly paying more because of the president’s reckless trade war.”

President Donald Trump declared in April that foreign trade and economic practices have created a national emergency. He said he refuses to let the U.S. be “taken advantage of” and that tariffs are necessary to ensure fair trade, protect American workers and reduce the trade deficit.

In 2024, the estimated effective tariff rate in Colorado was 3%, and it has now increased to 21% following broad-based tariff implementation from the administration on certain nations and products.

The U.S. estimated effective tariff rate has increased from 2.6% in 2024 to 20.7%. The last time they exceeded the current effective levels was in 1910.

Krimson Kover is scrutinizing planned photo shoots for their new lines of clothes and scaling back an overhaul of its website. Ross said the staff is asking, “Do we need to buy a new computer today or can we hold off until 2026? Do we need to hire that person or can we hold off until 2026?”

For now, the company and its suppliers have absorbed some of the economic hit from the tariffs. Before the increases, Krimson Klover paid a 7.5% tariff on imports from China, where about 60% of its products are made.

Going forward, Ross said customers will likely bear more of the costs. “You can plan for tariffs. You can put them into your goods, but you need some notice.”

Increased tariffs are expected to hit some sectors and regions of Colorado’s economy harder than others.

Key industries such as agriculture, construction, automobiles, energy, health care, technology and advanced industries like aerospace and bioscience face the greatest risk from higher tariffs and the potential for retaliatory tariffs abroad.

These sectors together make up nearly half of the state’s economy and jobs, as well as 90% of the international trade conducted by Colorado businesses.

The increase will also have an affect on the state’s budget, affecting health care and human services, housing initiatives, school finance and K-12 education, transportation operations, capitol construction and unemployment insurance.

The state’s report warns that further tariff escalation could push the state into a recession and cost schools and health care as much as $805 million in revenue losses by fiscal year 2026-27.

Among the Colorado companies most exposed to tariffs are clothing and shoe retailers, who import a large portion of the products they sell.

Broomfield-based shoe retailer Crocs said earlier last month that it expects revenues to decline about 10% year-over-year in the third quarter and operating margins to shrink 170 basis points because of higher tariffs.

Ball Corp., based in Broomfield, is also being hit hard by tariffs, because of the heavy reliance of its can-making division on aluminum, which has seen tariffs rise from 10% to 25% on imports.

Management is estimating a $10 million drag on profit margins and is coping with material delivery problems. The tariffs are also likely to hamper output from the company’s can plant in Monterrey, Mexico.

Denver-based VF Corp., parent of Vans, Timberland and The North Face, said in its most recent earnings call that it expects to lose $60 million to $70 million in gross profits because of tariffs this year, and it has targeted cost-saving measures intending to save $300 million this year.

The company isn’t providing full-year guidance on its earnings outlook because of the high uncertainty from tariffs, which are expected to hit hardest in the coming quarters.

For area business owners, the rising costs and tariffs are more than just figures on a page, they’re a source of growing uncertainty and frustration affecting day-to-day operations and long-term planning.

Ina Gasich, who owns Revolte Goods, a quirky shop packed with campy, spooky and oddball goods, said she experienced delays with a Halloween shipment of limited small-batch shirts from the United Kingdom, causing her to panic.

Ultimately the shipment came through, however, Gasich said three of her lines from the U.K., Spain and France recently canceled their shipments, which contained most of her shop’s Halloween and holiday items.

These orders were meant to replace previous ones that had been canceled because of tariff issues.

She said she was aware that tariffs could change at any time because of the uncertainty revolved around them, but something that was providing a bit of relief was the “de minimis” exemption, a customs law that would allow international shipments worth $800 or less to avoid tariffs.

The exemption ended recently by an executive order from the Trump administration nearly two years earlier than the deadline set in the tax cuts and spending bill approved by Congress.

“I’m not going to be able to bring over all those cute little home decor things from France and Portugal now,” Gasich said.

Gasich said she’s starting to see price shifts among products from several small U.S.-based artisan vendors that manufacture overseas, with home and holiday decor being affected the most.

Despite the challenges, Gasich said she feels grateful for the support of her customers.

“It’s kind of like the Grinch that stole Christmas, right? Like every time the Grinch comes in and does something really mean and scary, like all the residents of Whoville, they get closer, they love harder, they take care of each other more, and that’s kind of what we’re seeing,” she said.

When Trump raised tariffs in his first term, Krimson Klover considered shifting its production to the U.S., but couldn’t find the right fit. The company’s volume was too small for one factory and another prospect couldn’t produce the clothes quickly enough. Ross believes that bringing manufacturing back to this country will require more planning and more predictable industrial policies.

Ross was grateful for an order in August that extended the detente in the U.S.-China trade war, but isn’t sure how long the truce will hold. She said it could last the announced 90 days, or Trump could declare tomorrow that tariffs are going up again.

Charlotte Elich opened her first store on South Pearl Street, a popular Denver shopping district, in 1977. She now has three stores, all named 5 Green Boxes: a boutique and a gift and home wares store on South Pearl and a store in Union Station in Lower Downtown.

After decades of building a following , Elich isn’t sure of the future of local retail.

“It’s costing us more to get goods,” Elich said. “I’ve seen so far 10 and 15% increases.”

Elich’s vendors buy from China, India, Peru and other places. She said some of her suppliers have absorbed some of the costs of the higher taxes, but doesn’t expect that to continue for long. Her customers, not the exporting countries, will pay the price, Elich said.

Colorado’s top export destinations are Mexico, Canada, China, South Korea, Malaysia and Switzerland. Meanwhile, the state’s imports the most from Canada, China, Mexico, Switzerland, Taiwan and Vietnam.

On April 10, The Denver Post visited several stores such as World Market, GW Supermarket, and H Mart to check the prices of various imported goods, including produce, cheese, condiments, snacks and drinks, to track the effects of tariffs.

On Sept. 2, Post staff returned to check if prices had changed. Products from countries such as Japan, China, Mexico and Canada saw modest but noticeable increases, though it’s unclear if the hikes are related to recent trade policy.

At World Market, Japan’s Hello Kitty Original Ramune Soda and Hatakosen Watermelon Ramune Soda both rose from $2.49 to $2.79. Kasugai Gummy Candies, in both peach and grape flavors, went from $3.99 to $4.29.

In China’s section, Fanta Peach and Coca-Cola Strawberry drinks each rose from $3.29 to $3.49. Additionally, the country’s Lay’s Roasted Seaweed Chips Can, increased from $4.49 to $4.79.

Canada’s Dr. Oetker Mousse Mix went from $3.49 to $3.79, although the vanilla flavor is currently on sale for $2.84.

Other price increases include:

•Dalmatia Fig Spread (Croatia): $5.49 to $5.99

•The Republic of Tea Cold Defender (USA): $12.99 to $13.99

•Illy Dark Roast Coffee (Italy): $14.99 to $15.99

•World Market Greek Extra Virgin Olive Oil (Greece): $12.99 to $13.99

World Market did not respond to several requests for comment on tariff effects on their products.

At GW Supermarket, an Asian American supermarket chain that has a large selection of international goods, saw an increase in tomato prices. In April, the price was $1.49 per pound, now they are $2.39 per pound.

A selection of imported cheeses, which carried a $13.99 aged hard cheese from Nicaragua, were no longer found on shelves.

At Asian supermarket chain H Mart, several produce items that appear to be imported from Mexico have experienced price increases. Carrots, which were previously priced at 98 cents per pound, are now $1.29 per pound.

Chives, which were $3.98 per pound on a manager’s special, have increased to $4.98 per pound, still under a manager’s special. Persian cucumbers have also gone up in price, from $1.78 per pound to $1.99 per pound, while remaining on a manager’s special.

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