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Than twenty four hours now until tomorrow's event in the Rose Garden, we take a look at how individual states are preparing for the economic impact if they can. Joining us now in fact, from Denver, Colorado Governor Jared Poulis, Governor, it's great to see you. Welcome back to Bloomberg TV
and Radio. A report just doubt from a group called Farmers for Free Trade and the World Trade Center Denver finds that the tariff policies were expecting and we're unclear on what exactly they will be from Donald Trump tomorrow could quadruple what Colorado already pays for imports. How do you prepare for that?
Look, I mean, this is one of the biggest tax hikes in American history.
It's not Liberation Day, it's recession day.
Fundamentally, I'm saddened because, like so many others, I was hoping the President was using this as a negotiating tactic to have more free trade, which we would love and benefit from. Free trade is fair trade, bring down tariffs and barriers, both for imports as well as reciprocally for
exports to other countries. But it looks like they're actually fixated on a tax increase here, increasing the size of government through charging consumers more destructive to American manufacturing, agricultures, Colorado's biggest sector. It would be devastating our biggest trade partners, Canada and Mexico. So I really go into this in a very realistic but sad state that this is what.
It's coming to.
Well, as you talk about US manufacturing, Governor, the President argues that this is a way to bring more manufacturing to this country. Do you expect Colorado could reap any of that benefit of companies wanting to make more in the United States.
It'll destroy American manufacturing. And I've talked to many manufacturers here who are going to close down and move overseas or considering doing that because guess what two things. One is, the supply chain for parts and materials is international.
Your tariff upon entry to the United States.
If you're exporting international markets, you're going to set up production in another country like Canada or Mexico or Central America. It doesn't make sense to manufacture anything here if you're not able to export it to other countries. And now they're going to have high reciprocal tariffs as well as many of the inputs for those products are sourced in other countries as well, So you get tax coming, you get tax going, and you know, the power to tax
is the power to destroy. And I think if this policy moves forward, it'll do an excellent job of really hurting the American economy.
And that's what makes me so sad.
Have you had or are you having any dialogue with the White House about this government?
Why.
I've certainly expressed to officials, and you know, when I had the chance to visit with the President himself my skepticism of tariffs, I told him what I tell you. I said, Look, if you're using this as a negotiating tactic to achieve more free trade and reduce tariffs, I'm all for it. I'll be the first to praise your
four dimensional chess and wisdom. But the proof will be in the pudding if the terrorifts actually go in and they weren't in negotiation, we're effectively stabbing ourselves in the heart and causing a major recession that affects US and of course has global ramifications as well.
So what does not just you and your position as governor, but your party as Democrats, what can you do realistically to counter these policies from the administration if anything?
Well, I think what we've learned for the future is that as part of future trade agreements and who's going to of course trust United States as a trade partner for negotiated treaties after this, we need to make sure that future presidents are not able to amend those without
going back to Congress. I know our future trading partners are going to want to see this will emerge from these arcages of isolationism once again and embrace the global marketplace for maade in America and grown in America products. And when we do, we're going to have to build in assurances that our trading partners will demand that we won't have future presidents at their own whim destroy our economy.
Governor, what does this mean for Colorado as a major tourism state? Count the ways right, skiing, hiking, craft, breweries, weed. Are they all impacted?
They really are.
So we talked about how it damages American manufacturing. Of course, how it damages consumers, that's self evident, but it goes beyond those sectors because you know, we trade in goodwill and We've already seen a reduction in flights from Canada and Mexico, two of our biggest tourism partners.
As well.
If you go to our ski resorts and we still have our world class skiing open here into spring, come visit. We often have many Canadian and Mexican tourists in Veil and Aspen, etc. We're already seeing decreases in that because of burning through the goodwill. We know we're going to see that even more so. It not only hurts manufacturing, and it not only hurts it only hurts consumers, it also hurts tourism in many other sectors. Plus, look, we know better.
This is economics one oh one, David Ricardo. Competitive advantage. We know what this does. Every country shouldn't and doesn't need to make everything, make what you're good at and trade. Trade inherently makes both parties better off, and they both emerge from a trade wealthier and in a better place, whether they're buying or selling, whether it's cash or a product or service. And we need more of that to help increase global prosperity, not less well.
Obviously, Governor the President also argues that what is needed to increase US prosperity is not just what he sees is better balanced trade around the world, but also the notion that he needs lower barriers on things like regulation lower taxes. In addition, he argues that tariffs and tax policy really shouldn't be separated. This should all be viewed as one long term game here, and that tax cuts ultimately could come act as a reprieve for whatever economic
pain results from tariffs. What's your response to that theory.
Look, if corporate tax cuts can absolutely help companies grow, but remember they only pay those they only pay those taxes on profits. If the tariffs plunge you into losses, or from a profit into a loss, or to break even status, you don't benefit one iota from a corporate tax cut if.
You're not even making money on your bottom line because of the tariffs.
So tariffs are attacked on your gross rather than your net and that's one of the reasons they're so pernicious. They can drive companies out of business in a way that corporate taxes, no matter how high they are, never can, because ultimately those are attacks on profits, whereas this is a tax on gross sales that.
For tomorrow's announcement will Colorado face a recession.
We're in We're look, we're part of the United States of America in good times and in bad.
It's like a marriage for better or for worse.
You know, no state can buck a national economic trend if this is where it takes it. And I still hope as an American that the President has a master negotiates strategy here that somehow will wind up with free trade with every country. If that happens, I will be the first to congratulate his brilliance.
But I am skeptical. I don't think that's where it's going.
And I'm fearful because from what I see so far, this is leading to a recession for the whole nation.
And finally, Governor, do you believe that the president has other voices in his ear, whether it's the Treasury Secretary Scott Bessett, who may encourage some of the arguments you were making about the potential detrimental effects, or is this Trump and Trump's decision alone.
Well, I'm sure that there are many varied voices around the president. Republicans have traditionally been a pro trade party. There's many pro trade voices around the president. Again, high stakes game of chicken at best, awful, ill informed, counterproductive, economic devastation at the worst. So again, let's go into it with the benefit of a doubt. Let's hope that every country agrees to take down their barriers.
Our tariffs go down, theirs go down.
You know, call me a skeptic, but again, I'll be back in a week or two, and if that's what happens, I'll be praising the brilliance of the strategy.
All right, well, we'll look forward to you coming back, sir, Thanks very much for your time this evening. That's the Governor of Colorado, Jared Polus here with us on our extended edition of Balance of Power.