Wood: What will Trump 2.0 mean for region?

What could a second Trump Administration mean for the region’s economy?

Answers to that question will unfold in the months and years after inauguration day Jan. 20. But, if public pronouncements are to be believed, there could be both positives and negatives for the Boulder Valley and Northern Colorado, as well as the broader economy.

As BizWest managing editor Lucas High and reporter Sharon Dunn described in the story on page 18A of this edition, Trump 2.0 will affect a wide variety of sectors. Here is some of what they related, plus a few more potential impacts:

• Tariffs. To what extent a President Trump will implement aggressive tariffs remains unknown, but tariffs could stoke inflation. And although some manufacturing might return onshore to avoid such added expenses, the U.S. economy simply doesn’t have enough manufacturing capacity to replace overseas factories, University of Colorado economist Richard Wobbekind told BizWest.

• Likewise, tax cuts — whether for corporations or individuals — would have a stimulative effect on the economy, possibly stoking inflation and increasing the federal deficit.

• Production of oil and gas, already at a high level, could increase under a Trump administration, potentially benefiting areas such as Weld County and driving down energy costs.

• Climate research could take a hit under Trump, affecting thousands of jobs in the Boulder Valley and nearby Jefferson County, home of the National Renewable Energy Laboratory.

• Renewable-energy tax credits provided under the Inflation Reduction Act could be in jeopardy, affecting solar, wind, electric-vehicle and other incentives. Trump and his pick for Treasury Secretary, Scott Bessent, have been hostile to the law and could seek to eliminate some of its provisions. This could have a devastating effect on clean-energy companies in the region.

• Aerospace and defense. Colorado boasts one of the nation’s largest aerospace and defense sectors, and it’s unlikely that funding will be cut for such programs, analysts say. But Colorado could lose out on the headquarters for the U.S. Space Command, which Trump previously shifted to Alabama. Biden overturned that move, keeping the headquarters in Colorado Springs.

• An immigration crackdown could have a dramatic impact on multiple Colorado industries that rely heavily on migrant labor, including agricultural workers, the hospitality sector, construction and others.

• A big unknown is whether the Trump administration will attempt to repeal the CHIPs and Science Act, which provides incentives for re-onshoring production of computer chips. Although Trump has spoken against the law, many Democrats and Republicans have embraced it as strengthening national security.

• Trump previously failed to repeal the Affordable Care Act, and any revival of those efforts could throw millions of people onto the ranks of the uninsured.

• Regulations that stifle construction of housing could be targeted in a Trump administration, potentially increasing the nation’s housing stock. Although Vice President Kamala Harris proposed a $25,000 down-payment assistance for first-time homebuyers, that approach has not been embraced by Trump. Still, any actions to boost the housing supply would be welcome.

• Biotech companies could seek to onshore some drug production to avoid tariffs, but the sector also could face challenges in terms of drug approval. Robert F. Kennedy Jr., nominated to head the U.S. Department of Health and Human Services, has been hostile to vaccines, which some industry insiders fear could stifle innovation.

Trump 2.0 likely will be a mixed economic bag for the region, but it definitely won’t be boring.

Christopher Wood can be reached at 303-630-1942 or cwood@bizwest.com.

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