DENVER — Denver-area business owners and experts said increased tariffs on goods and services from countries like Canada will only lead to higher prices and may hurt local businesses.
On Saturday, President Donald Trump signed an order imposing tariffs on three countries, two of which are America's largest trading partners.
The order imposes a 10% tariff on China and a 25% tariff on Mexico and Canada. An exception is a 10% tariff on Canadian energy, including oil, natural gas, and electricity.
Zac Rogers, an associate professor of supply chain management at Colorado State University, told Denver7 that tariffs will have a big impact.
"It has nothing to do with the cost, the volume, the quality. It's just an additional cost," Rogers said. "A lot of times in the past, it's been used to either stimulate internal growth or as sort of a punishment or a stick against the importing country."
"That cost sometimes people say, 'Oh, it's paid by China.' It's not. It's paid by the party that imports it into the United States," Rogers added.
Jeremy Peterson, who owns Identity Pet Nutrition, which he and his brother started in 2018, said tariffs on Canadian goods would significantly impact his business.
"We are a U.S.-based company, but we manufacture our products at co-manufacturers in Canada," he said. "That's where we can get the highest quality ingredients that are hormone and antibiotic-free, GMO-free, even glyphosate-free."
He says the 25% imposed tariff on his goods only means higher prices for his customers.
"The consumer who's going to be impacted, most of all, is not aware of the impacts that this will have," he added. "The biggest one is a price increase. The prices, in some cases, may double, or even the price increase may be greater."
His concern goes beyond price, too. Peterson told Denver7 that the imposed tariffs could lead to less competition and choices for consumers.
"If brands like us were to go out of business, the consumer is going to have less choice and less higher quality products," Peterson said.
But it's not just Identity Pet Nutrition that could suffer.
Rogers says goods like gas, produce, and even vehicles could shoot up in price.
"I mean, guac is going to cost a lot extra. That's that's one thing," he said.
Both agree the most significant issue at the moment is the unknowns of the tariffs.
"The biggest thing for companies right now is uncertainty," Rogers said.
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