How Tariffs Led to the Bankruptcy of 4×4 Colorado and Impact on Local Economy

How Tariffs Led to the Collapse of 4×4 Colorado

The recent bankruptcy filing of 4×4 Colorado, a Lakewood-based rooftop tent company, underscores the devastating impact international tariffs can have on local businesses. Founded by Blaine Koker-Tatalovich and Josh Frakes-Belair, the company was riding a wave of customer interest as outdoor adventures surged in popularity, only to face insurmountable challenges brought on by incoming tariff increases. With a sudden jump in costs—reported to be as high as 130% for materials due to tariffs on Chinese imports—the company was unable to fulfill customer orders, leading to a plummet in sales from over a hundred tents per month to just single digits.

The Broader Economic Impact of Tariffs

This local business collapse is part of a broader narrative affecting various sectors in Colorado, particularly as outlined in Governor Jared Polis's recent report on the impacts of former President Trump’s trade policies. The analysis showed that Colorado's effective tariff rates skyrocketed from 3% in 2024 to a staggering 21% in 2025, a rate not seen in over a century. Affected sectors range from construction to agriculture, meaning families across Colorado are feeling the financial strain in their everyday lives. Essential goods such as groceries and healthcare are now more costly, threatening to push the state into potential recession.

Consumer Consequences Addressing the Fallout

A significant number of customers who purchased rooftop tents from 4×4 Colorado are now left in a precarious situation, with many reporting that they have not received their purchased products or any refunds despite waiting for months. The company acknowledged the challenge of retrieving customer data necessary for processing refunds, noting that they lost access to vital database information during their financial troubles. This situation reflects a concerning trend where consumers often bear the risks associated with businesses struggling due to factors beyond their control.

Parallel Stories of Businesses in Distress

The story of 4×4 Colorado is not unique. Nationally, companies like retail giant At Home have also faced losses and filed for Chapter 11 bankruptcy citing similar tariff-induced financial pressures. These bankruptcy filings serve as stark reminders that tariffs don’t just impact companies—they ripple outwards affecting employees, families, and the broader economy.

Future Trends: What Can Be Done?

As policymakers assess these ongoing challenges, steps must be taken to protect small businesses from the unpredictability of international tariffs. Advocating for greater transparency in trade policies and pursuing alternative sourcing solutions may help mitigate the risks. Additionally, businesses could benefit from diversifying their supply chains to become less reliant on any singular sourcing region.

Taking Action and Staying Informed

In light of these developments, it’s crucial for homeowners, parents, and singles alike to remain informed about local business trends and economic policies that could impact their livelihoods and expenditures. Being proactive and advocating for fair trade practices may provide necessary support for future business stability and growth in Colorado.

**As we witness the ongoing effects of tariffs on local businesses and everyday consumers, it’s important to engage in conversations about trade, encourage local entrepreneurship, and push for policies that promote economic resilience. Stay involved, stay informed, and support your local businesses facing these tough economic realities.**