Governor Kathy Hochul today announced the findings of the New York State Tariff Disruptions Report, a statewide analysis documenting the impacts caused by the Trump Administration’s tariff policies.  The report outlines that tariffs are imposing an effective 21 percent tax on imported goods, costing New York families an estimated $4,200 annually.  Additionally, inflation is nearly 52 percent higher than the 10-year average.  These tariffs have generated price surges across critical sectors, and are threatening to reverse years of economic growth and job creation in New York State.  The report can be found here.

“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.”

As directed by the Governor, New York State agencies were required to investigate and report the economic and social impacts of federal tariffs.  This coordinated response, ordered through a July 14, 2025, directive from the Governor’s Office of State Operations, tasked Empire State Development and the Office of General Services with leading a cross-agency analysis covering cost increases, supply chain disruptions, and threats to jobs and small businesses across New York’s economy.  New York State’s tariff resource guide can be found here.  Preliminary results demonstrate that tariffs have already caused measurable setbacks in multiple sectors:

• Agriculture: Farms statewide face higher expenses for fertilizer and equipment.  One farmer indicated that his business faces increases up to $20,000 annually, while milk exports have fallen 7 percent.
• Construction: Material costs have climbed by 15–25 percent, adding around $11,000 to each new single-family home, impacting housing and infrastructure projects across the state.
• Tourism: Reduced Canadian travel led to nearly 400,000 fewer visitors to New York in May of 2025 as compared to May 2024, cutting deeply into a sector that employs one in ten New Yorkers.
• Health Care: Tariffs on imported equipment and pharmaceuticals have forced increased costs and caused strain on operations and have raised premiums for state employee health plans by $14.5 million.
• Manufacturing: Input costs have risen 20 percent, cutting profit margins and delaying investments for hundreds of New York manufacturers reliant on cross-border supply chains.

In April, Governor Hochul took decisive action as New York joined a coalition of states in suing the Trump Administration for unlawfully and unilaterally imposing tariffs under the International Emergency Economic Powers Act (IEEPA).  The Supreme Court of the United States heard arguments on the case on Wednesday, November 5.

Empire State Development President, Commissioner and CEO 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.”

New York State Office of General Services Commissioner Jeanette Moy said, “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 said, “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.”