Albany, NY, November 8, 2025
A newly released report from Governor Kathy Hochul’s office reveals that federal tariffs are imposing a 21% tax on imports, costing New York households about $4,200 annually. The tariffs threaten approximately 500,000 jobs in trade and manufacturing and are contributing to soaring inflation rates. Key sectors such as agriculture, construction, tourism, health care, and manufacturing are experiencing significant financial strain, prompting calls for policy changes to foster economic growth without unnecessary burdens.
New York State Report Highlights Economic Impact of Federal Tariffs
Albany, NY – A recent report from Governor Kathy Hochul’s office reveals that federal tariffs are effectively imposing a 21% tax on imported goods, costing New York households approximately $4,200 annually. The tariffs also pose a threat to 500,000 jobs linked to trade and manufacturing within the state.
Key Findings of the Report
- Effective Tax on Imports: Tariffs are acting as a 21% tax on imported goods, leading to an estimated annual cost of $4,200 per household in New York.
- Job Threats: Approximately 500,000 jobs tied to trade and manufacturing in New York are at risk due to these tariffs.
- Inflation Concerns: Inflation rates are nearly 52% higher than the 10-year average, with tariffs contributing to price increases across various sectors.
Sector-Specific Impacts
The report outlines several areas adversely affected by the tariffs:
- Agriculture: Farms statewide are facing higher expenses for fertilizer and equipment, with some reporting annual increases up to $20,000. Additionally, milk exports have declined by 7%.
- Construction: Material costs have risen by 15–25%, adding approximately $11,000 to the cost of 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 2025 compared to May 2024, significantly affecting a sector that employs one in ten New Yorkers.
- Health Care: Tariffs on imported equipment and pharmaceuticals have increased costs and strained operations, raising premiums for state employee health plans by $14.5 million.
- Manufacturing: Input costs have risen by 20%, squeezing profit margins and delaying investments for hundreds of New York manufacturers reliant on cross-border supply chains.
Background Context
In response to the federal tariffs, New York State agencies conducted a comprehensive analysis to assess the economic and social impacts. The findings highlight the broader consequences of these trade policies on the state’s economy and its residents. Governor Hochul emphasized the need for policies that support economic growth without imposing undue burdens on families and businesses.
Frequently Asked Questions (FAQ)
What is the effective tax rate imposed by the federal tariffs on imported goods in New York?
The federal tariffs are effectively imposing a 21% tax on imported goods in New York State.
How much is the annual cost per household in New York due to these tariffs?
The tariffs are costing New York households approximately $4,200 annually.
How many jobs in New York are at risk due to the federal tariffs?
Approximately 500,000 jobs tied to trade and manufacturing in New York are at risk due to these tariffs.
Which sectors in New York are most affected by the federal tariffs?
The sectors most affected include agriculture, construction, tourism, health care, and manufacturing.
What is the current inflation rate in New York compared to the 10-year average?
Inflation in New York is nearly 52% higher than the 10-year average, with tariffs contributing to price increases across various sectors.
Key Features of the Report
| Feature | Details |
|---|---|
| Effective Tax Rate | 21% on imported goods |
| Annual Household Cost | $4,200 |
| Jobs at Risk | 500,000 in trade and manufacturing |
| Inflation Rate | 52% higher than 10-year average |
| Affected Sectors | Agriculture, Construction, Tourism, Health Care, Manufacturing |
Now Happening on X
- @coolhand_luke88 (November 7, 2025): Tariffs impose an effective 21% tax on imported goods, jeopardizing 500K N.Y. manufacturing jobs, according to a Hochul report. View on X
- @SPECNews1BUF (November 7, 2025): Tariffs are imposing effectively a 21% tax on imported goods, costing New York households an estimated $4,200 annually and could jeopardize 500,000 jobs tied to trade and manufacturing in the state. View on X
- @SPECNews1ROC (November 7, 2025): Tariffs are imposing effectively a 21% tax on imported goods, costing New York households an estimated $4,200 annually and could jeopardize 500,000 jobs tied to trade and manufacturing in the state. View on X
- @HouseInSession (November 7, 2025): NYS releases a preliminary report saying tariffs are imposing an effective 21 percent tax on imported goods, costing New York families an estimated $4,200 annually and generating price surges across critical sectors. View on X
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