ALBANY—Key findings of a new report show that tariffs are imposing an effective 21% tax on imported goods and costing New York families an estimated $4,200 annually.

New York State Tariff Report, a statewide analysis documenting the impacts caused by the Trump Administration’s tariff policies, also pointed to a spike in inflation, which is nearly 52% higher than the 10-year average.

These tariffs have generated price surges across critical sectors and threaten to reverse years of economic growth and job creation in New York State, noted Gov. Kathy Hochul on Nov. 7.

“New Yorkers are seeing firsthand what these tariffs really are—a tax on hardworking families and employers,” Gov. Hochul said. Prior to the arrival of the Trump administration’s tariffs, the state’s economy was growing in all areas, she said. “We achieved record tourism numbers, a private-sector job growth rate that outpaces the nation, and unprecedented commitments from businesses to grow jobs.”

She said that 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.

Preliminary results demonstrate that tariffs have already caused some setbacks in multiple sectors.

Transportation Infrastructure:

Tariffs on steel, aluminum and other key construction materials drive up the cost of both new projects and critical repairs to existing infrastructure, stretching public budgets and potentially delaying needed improvements. These rising costs risk creating longer project timelines and increased burdens on taxpayers.

Steel and aluminum are essential for rebar in concrete, structural frameworks (bridges, overpasses), guardrails, signs, and other essential transportation infrastructure. Steel tariffs were raised in June 2025 to 50% from the previous level of 25%, leading to increased costs for construction and infrastructure projects that use significant amounts of imported steel.

Tariffs on foreign goods can also reduce pressure for American companies to keep their prices low. Despite not being subject to tariffs, two large American steel producers reported in July that they were charging more for their products in the second quarter of 2025 than the first quarter of 2025.

Asphalt has also been subject to price increases, potentially affecting road maintenance repair projects across the State. The New York State Department of Transportation reports costs increasing from $591 per ton to $646 per ton (over a 9% increase or 5.9% increase when seasonally adjusted) from January 2025 to July 2025.

Copper, used in electrical wiring for traffic signals, lighting, rail systems, and other transportation infrastructure, has significantly increased in cost. In September 2025, copper cost approximately $4.50 per pound, as compared to only $3.25 in July 2024, a 38% increase.

Tariffs are also impeding New York’s ability to implement clean and efficient electric public transportation. NYSDOT reports that manufacturers for electric buses are estimating a $13,000 tariff-related cost increase per bus on top of previously negotiated prices. This significant cost hike delays the modernization of public transit infrastructure and impedes the state’s progress toward its emissions reduction goals, the report stated.

Housing Infrastructure

Recent estimates indicate tariff actions will add approximately $11,000 to the cost of building each new single-family home.

The NYS Homes and Community Renewal (HCR) reports that while the full impact of the tariffs on the housing market will be more evident by early 2026, rising prices are already creating challenges. In one financed project, HCR reported an $18,000-increase in the cost of a single elevator, and an additional $370,000-increase for essential building supplies.

“This escalation in construction costs, driven by tariffs, will inevitably result in fewer new homes built and, consequently, reduced access for homeownership across New York State,” the report stated.

The full tariff report can be found at: https://www.governor.ny.gov/sites/default/files/2025-11/Tariff-Report.pdf