COLORADO SPRINGS — Now the Director of UCCS's Economic Forum, Bill Craighead also taught economics and international trade courses at Colorado College and the Air Force Academy. Wednesday, he explained an economist's perspective on President Trump administration's implementation of reciprocal tariffs.
"It's a pretty big change," said Craighead. "This kind of broad, sweeping tariffs really goes against the trend of US and international policy for several decades."
The Trump administration argues this policy shift will lead to manufacturers moving their operations to the United States, but according to Craighead, it's unclear when we would see this potential benefit and how it would manifest.
"Economists generally believe that international trade is mutually beneficial, just like exchanges between individuals are," he said. "When you think about the tariffs in manufacturing, though, is that it really can potentially cut both ways."
According to the Colorado Springs Chamber and EDC's website, there are more than 500 advanced manufacturers with sites in the Springs employing more than 11,000 workers. They sent me this statement:
While it is early to fully assess the impact of these tariffs, the diverse industry base in Colorado Springs and the Pikes Peak region ensures our economy remains resilient and robust. Key sectors such as aerospace and defense, advanced manufacturing, technology, and healthcare provide a strong buffer against market forces. We recognize that these policies will have varying impacts on businesses, especially those reliant on imported materials to keep costs low for U.S. buyers. We are monitoring updates from the U.S. government and our trading partners in North America, Europe, Asia, and other nations. Our aim is to work closely with our members and local businesses to identify strategies to minimize potential economic impacts.
As Colorado Springs continues to grow, another potential cost of these tariffs, Craighead says, could appear when you buy a home.
"Tariffs are going to affect the cost of building materials," he said.
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