New York Gov. Hochul: Tariffs pose risk to MTA fleet renewal

Current federal tariff policies could increase the cost of New York Metropolitan Transportation Authority's (MTA) fleet renewal program by $1 billion, according to an analysis conducted by the MTA and presented to its board in September.

The MTA's multi-year rolling-stock renewal calls for the purchase of thousands of new subway cars, commuter-rail cars and buses, an investment that would in turn support jobs for New Yorkers at vehicle and components manufacturing companies, MTA officials said in a press release.

New York Gov. Kathy Hochul wrote a letter to U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Ambassador Jamieson Greer to request tariff exemptions for transit rolling stock purchases.

More than 75% of the components in the MTA's most recent generation of subway cars, the R211s, were made in the U.S., and the cars were assembled domestically. However, modern rail cars require some imported parts that U.S. manufacturers don't offer. The agency has committed $23 billion to the rolling-stock renewal plan already, but the tariffs on specialized components dilute the value of the MTA's 2025-29 capital plan, MTA officials said. 

The $1 billion in potential increased costs from tariffs could instead be used to purchase MTA Metro-North Railroad coaches, 150 new M9-A rail cars for the MTA Long Island Rail Road, nearly 1,000 new buses, or more than 250 subway cars, officials 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," Hochul said. "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."