Fed. Tariffs Add $1 Billion in Cost Increases To MTA’s New Rolling Stock Plans: Report
NEW YORK — A new report presented at the Metropolitan Transportation Authority (MTA) board meeting in September details the $1 billion price increase resulting from the Trump administration’s tariff policy on the MTA’s plans to upgrade its rolling stock by purchasing new subway cars, commuter rail cars, and buses.
Following the release of the report, New York Gov. Kathy Hochul wrote directly to U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer to request exemptions for transit rolling stock purchases from the current tariff regime.
The MTA is in the midst of a generational upgrade to its fleet, with $23 billion committed to purchasing thousands of new vehicles. The investment will support thousands of New York jobs at companies that manufacture these vehicles, as well as at companies that make the components required to build them, MTA officials stated on Sept. 30.
“Donald Trump’s reckless trade war does more than just raise prices for New York families; it severely threatens government’s ability to deliver on big, ambitious projects,” Gov. Hochul said. “New York’s historic investments in mass transit include plans for the largest improvement to our rail and bus fleet in history, but Trump’s tariffs have created a $1 billion tax on transit and put these improvements at risk. Our entire region depends on the MTA to get around, and this planned investment promises to support thousands of good New York jobs; these reckless tariffs must end now.”
The MTA’s most recent generation of subway cars, the R211s, which operate on the lettered subway lines and the Staten Island Railway, are assembled in Nebraska and Yonkers, N.Y. More than 75% of their components were made in the United States, well above the “Buy America” threshold for transit agency procurements required by the federal government. However, modern railcars require some imported parts for which American manufacturers have no domestic alternatives.
Current tariffs on specialized components required to build rolling stock significantly diminish the purchasing power of the MTA’s 2025–29 Capital Plan. The $1 billion in potential additional costs could instead be used to purchase most of the Metro-North coaches needed; 150 new M9-A rail cars to reduce crowding on the Long Island Rail Road; nearly 1,000 new buses; or more than 250 subway cars for the 1, 2, 3, 4, 5, and 6 lines, MTA officials noted.
MTA Chair and CEO Janno Lieber said, “As the MTA keeps breaking ridership records, our investments in the next generation of rolling stock become more important than ever. New subways, buses, and railcars are needed to give our riders the service they deserve. It’s time for our partners in Washington to let us support American workers and responsibly spend taxpayer dollars.”
MTA Rolling Stock Program Chief Jessie Lazarus added, “An investment in rolling stock is more than just an investment in a more modern, comfortable ride. It’s an investment in American workers. The MTA is committed to securing maximum value from our capital program, and that means speaking honestly and candidly about the impact of policies that dilute New York’s spending power.”
Earlier this year, the governor sent a letter calling on the U.S. Department of the Treasury to immediately refund $13.5 billion in tariff payments to New Yorkers. She has also held roundtables across the state with local business leaders to highlight the impact tariffs have had on their businesses. In August, Gov. Hochul, New York Attorney General Letitia James, and a coalition of other states sued to halt tariffs imposed under the Trade Act that they contend are illegal. In February, the governor was part of a major U.S. Supreme Court ruling that outlawed tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA).
As part of the FY 2027 Enacted Budget, the governor launched a $30 million tariff relief program for agricultural producers in the state to help those who rely heavily on international markets. The program will provide direct payments ranging from $1,000 to $25,000 to eligible producers.
Published: October 15, 2026.
