New York Governor Kathy Hochul has released the preliminary findings of the New York State Tariff Disruptions Report, which details the economic effects of tariffs implemented during the Trump Administration. According to the report, these tariffs function as an effective 21 percent tax on imported goods and are costing families in New York approximately $4,200 each year. The analysis also indicates that inflation in the state is nearly 52 percent higher than its ten-year average.
Governor Hochul stated, “New Yorkers are seeing firsthand what these tariffs really are — a tax on hardworking families and employers. Under my leadership, the State’s economy was growing in all areas. We achieved record tourism numbers, a private sector job growth rate that outpaces the nation, and unprecedented commitments from businesses to grow jobs. Tariffs are threatening to undermine all of this. They raise prices on everything from milk and medicine to steel and housing materials, while doing nothing to strengthen our economy. Tariffs are destabilizing markets, straining small businesses, and punishing the very people who keep our state moving.”
The report was developed following a directive issued by Governor Hochul on July 14, 2025. This order required state agencies to examine how federal tariffs were affecting costs, supply chains, jobs, and small businesses across various sectors of New York’s economy. Empire State Development (ESD) and the Office of General Services (OGS) led this cross-agency review.
Findings from the preliminary analysis show significant impacts:
– In agriculture, farmers have seen their costs for fertilizer and equipment rise substantially; one farmer reported an annual increase of up to $20,000. Milk exports have dropped by seven percent.
– Construction material prices have risen between 15–25 percent since implementation of the tariffs, adding about $11,000 to each new single-family home.
– The tourism industry experienced a decrease in Canadian visitors: there were nearly 400,000 fewer travelers from Canada in May 2025 compared with May 2024.
– Health care providers faced higher expenses due to increased costs for imported medical equipment and pharmaceuticals; premiums for state employee health plans went up by $14.5 million.
– Manufacturing companies saw input costs climb by about 20 percent—reducing profit margins and delaying investments among hundreds of manufacturers reliant on international supply chains.
In response to these developments, New York joined other states earlier this year in filing a lawsuit against the Trump Administration over what they claim is unlawful use of tariff authority under the International Emergency Economic Powers Act (IEEPA). The Supreme Court heard arguments related to this case on November 5.
Empire State Development President Hope Knight said: “Tariffs are slowing investment, raising costs, and threatening industries that drive New York’s economy. Under Governor Hochul’s leadership, we have made historic progress creating jobs and attracting business growth — and we will keep fighting to protect that momentum for New Yorkers.”
Jeanette Moy of OGS commented: “At Governor Hochul’s direction, OGS and ESD collaborated on a statewide assessment of the socioeconomic impacts of Washington’s tariffs on state industries, from agriculture to construction. With the uncertainty and instability that federal tariffs bring to our state’s economy, I encourage all stakeholders to use the New York State Tariff Disruptions Report to gain a better understanding of how federal tariffs are negatively affecting New Yorkers and the state’s economic prosperity.”
State Senator Sean Ryan added: “Donald Trump’s tariffs are a hidden tax on working families and small businesses. His misguided trade war with a close ally has driven up prices, cost jobs, and hurt communities like Western New York that depend on trade and tourism with Canada. I commend Governor Hochul for leading this statewide analysis which puts hard numbers behind what we’ve been warning all along: these reckless policies are hurting New Yorkers. It’s time for the federal government to reverse course and focus on lowering costs and restoring stability for American workers.”
