President Trump’s tariff policies are resulting in slower economic growth in the United States and around the world.
The Organisation for Economic Co-operation and Development (OECD) recently predicted global growth to slow to 3.1% in 2025 and 3.0% in 2026. For the United States specifically, GDP growth is projected at 2.2% in 2025 before declining to 1.6% in 2026.
“The global economy has shown some real resilience, with growth remaining steady and inflation moving downwards. However, some signs of weakness have emerged, driven by heightened policy uncertainty,” OECD Secretary-General Mathias Cormann states in a March 17 press release.
“Increasing trade restrictions will contribute to higher costs both for production and consumption. It remains essential to ensure a well-functioning, rules-based international trading system and to keep markets open,” Cormann adds.
How U.S. trade policy impacts Pikes Peak region
Key sectors such as aerospace and defense, advanced manufacturing, technology and healthcare could give the Pikes Peak region a strong buffer against adverse market forces.
“Although it is still early to fully gauge the impact of these tariffs on our region, the diverse industry base in Colorado Springs and the Pikes Peak region ensures our economy remains resilient and robust,” Colorado Springs Chamber & EDC spokesperson Jayne Mhono Dickey says.
According to Bill Craighead, program director for the University of Colorado Colorado Springs Economic Forum, the construction industry could be among the hardest hit locally.
“If you ask me what the biggest impact would be on our regional economy, I think it’s going to be construction costs and, obviously, housing affordability is already a huge concern in the region,” he says. “It’s a growing region, so if you look at how much of our GDP is accounted for by construction, it’s higher than it is nationwide.”
Canada is an important source of lumber, but even for builders who do not source from Canada, the increased cost of Canadian lumber will increase demand for American lumber, driving up prices across the entire market. Steel and aluminum tariffs, as well as tariffs on electrical components, will have an adverse effect on construction projects as well.
“It’s potentially pretty significant for home building and construction, which are really important for our region and it just exacerbates those housing affordability concerns,” he continues.
Uncertainty leads to delays in business investment decisions
Anyone who finds it difficult to follow present-day trade policy is not alone, and the resulting ambiguity may lead business owners to hold off on investments.
As of this writing, there are 10% tariffs on Canadian oil and energy products, and 25% tariffs on the remainder of Canadian and Mexican imports that do not satisfy the United States Mexico Canada Agreement (USMCA) rules of origin requirements. Tariffs on Chinese imports have been proposed to raise from 10% to 20%, and a 25% tariff has been placed on all imports of steel, aluminum and derivative products. Thus far, Canada, China and the European Union have retaliated with proposed tariffs on U.S. exports.
“I think a big part of the problem is the uncertainty that’s being created because the policy seems to change every day, if not more often,” Craighead says. “So, it’s really, really hard for businesses and consumers to make plans.”
Craighead points to the Peterson Institute for International Economics (www.piie.com) as a quality source of up-to-date information, timelines and changes.
