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Governor Kathy Hochul announced findings from the New York State Tariff Disruptions Report, revealing that federal tariffs function as a 21% tax on imported goods, costing New York families approximately $4,200 annually. According to the report, these tariffs have led to price increases across various sectors, threatening to reverse economic growth in the state. Inflation is reported to be 52% higher than the 10-year average, impacting agriculture, construction, tourism, healthcare, and manufacturing.
In agriculture, farmers face increased expenses, with some reporting up to $20,000 more annually, and milk exports have decreased by 7%. Construction costs have risen by 15–25%, adding $11,000 to each new single-family home. The tourism sector saw a reduction of nearly 400,000 Canadian visitors in May 2025 compared to the previous year, affecting an industry that employs one in ten New Yorkers. In healthcare, tariffs on equipment and pharmaceuticals have raised costs, increasing state employee health plan premiums by $14.5 million. Manufacturing input costs have risen 20%, affecting profit margins and delaying investments.
Governor Hochul, along with other states, sued the Trump Administration in April over these tariffs, challenging their legality under the International Emergency Economic Powers Act (IEEPA). The U.S. Supreme Court heard arguments on the case on November 5. President Trump commented on the hearing, stating that a decision against tariffs would be "devastating for our country" but suggested that a contingency plan might be needed.
The report, commissioned by Governor Hochul in July 2025, tasked Empire State Development and the Office of General Services with assessing the economic and social impacts of the tariffs. The findings aim to inform stakeholders about the tariffs' negative effects on New York's economy and encourage a reevaluation of federal trade policies.