Governor Kathy Hochul has released the findings of the New York State Tariff Disruptions Report, which details the economic impact of federal tariff policies enacted during the Trump Administration. According to the report, tariffs have created an effective 21 percent tax on imported goods, resulting in an estimated annual cost of $4,200 for New York families. The analysis also found that inflation in the state is nearly 52 percent higher than the average over the past decade.
The report highlights price increases across several sectors and warns that these trends could reverse years of economic growth and job creation in New York. “New Yorkers are seeing firsthand what these tariffs really are — a tax on hardworking families and employers,” Governor Hochul said. “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.”
Governor Hochul directed state agencies to conduct a comprehensive assessment of both economic and social effects caused by federal tariffs. This effort was coordinated through a July 14 directive from her office, with Empire State Development (ESD) and the Office of General Services (OGS) leading a cross-agency review into increased costs, supply chain issues, and risks facing jobs and small businesses.
Key findings include:
– In agriculture, farms face higher expenses for fertilizer and equipment; one farmer reported annual increases up to $20,000. Milk exports have dropped by 7 percent.
– Construction material costs have risen between 15–25 percent, adding about $11,000 to each new single-family home.
– Tourism has been affected by fewer Canadian visitors; May 2025 saw nearly 400,000 fewer travelers compared to May 2024.
– Health care providers face higher costs for imported equipment and pharmaceuticals; premiums for state employee health plans rose by $14.5 million.
– Manufacturing input costs have increased by 20 percent.
In April, New York joined other states in filing a lawsuit against the Trump Administration over its use of presidential authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs without congressional approval. The Supreme Court heard arguments on this case on November 5.
Empire State Development President Hope Knight stated: “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 added: “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 commented: “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.”
