Polis urges Trump not to impose new tariffs

DENVER (KDVR) — Here in Colorado, people are reacting to President-elect Donald Trump's proposal for higher tariffs.

While some believe he could be using the tariffs as a bargaining tactic, Governor Jared Polis said he is taking the proposal seriously.

Governor Polis is urging the President-elect to find a different way to let countries know he is serious about illegal immigration, warning them that his proposed tariffs could have many unintended consequences.

"He talked about this during the campaign, I thought it was just hopefully campaign rhetoric, but it's not, he says he's going to do it. A 25% tax on all imported items from Mexico and Canada," the governor said in an interview with FOX31.

Governor Polis is taking President-elect Trump's proposed tariffs seriously, worried about what they could do to Colorado consumers.

"63% of our vegetables imported from Mexico, 46% of our fruits and nuts. All of those groceries costing 25% more if he carries through on this and it would destroy American jobs. We're talking about our farmers, our ranchers here, we export potatoes from the San Luis Valley to Mexico. They are already talking about their president and retaliatory tariffs. That's because if we do it to them, they'll do it to us. There is no winner in that game," Polis said.

The governor said the tariffs would also impact manufacturers in the state. "If you look at almost any manufacturer here in Colorado, it uses parts from across the world. If those parts all cost 25% more to get here, a lot of that manufacturing is going to move overseas where they don't have to pay that tariff. The second thing it's going to do is destroy that market overseas in Europe, in Canada, in Mexico for made-in-Colorado and made-in-America products," Polis said.

While the governor wants the president-elect to find a different way forward, the leader of the supply chain program at the University of Denver believes this strategy is about punishing countries for crimes related to immigration.

"He tied the tariffs to the border. Which is very different than the way he's looked at tariffs in the past. The tariffs in the past, especially with China, it is a competition issue relative to being able to make things in the United States, where what he is focusing on in Mexico and Canada seem to be more related to immigration," said Jack Buffington, University of Denver Director of the Supply Chain Program.

North American companies also have a trade agreement in effect that experts said could be compromised if these tariffs are imposed.

"It's supposed to be a free trade zone where if something is made in Canada and shipped to the United States, or something is made in Mexico and shipped to the United States, there shouldn't be any sort of import tax or tariffs associated with this. Well, this really unprecedented because you are changing the whole nature of that agreement and again it kind of ties to this theme that it's not related to products as much as it is related to immigration policy," Buffington said.

Governor Polis said it is too early to say if the tariffs could impact the state budget.