Gov. Kathy Hochul says that it’s time for the Trump Administration to stop resisting and refund the estimated $13.5 billion in tariffs that were illegally collected from New Yorkers. Based on estimates by the Yale Budget Lab, the average New York household has faced an estimated $1,751 in added costs due to tariffs since they were enacted last year, for a total estimated $13.5 billion statewide impact.
Hochul highlighted the harm caused by tariffs on New York’s small businesses and particularly farmers across the state.
“These senseless and illegal tariffs were just a tax on New York consumers, small businesses and farmers and that’s why I’m demanding a full refund,” Hochul said.
The U.S. Supreme Court in a 6 to 3 ruling determined that Trump illegally used an emergency declaration to justify his imposition of a series of new tariffs. The court did not address the question of how refunds of the money that was illegally collected should be handled. President Trump, in his Feb. 24 State of the Union address, vowed to work around the Supreme Court’s ruling and institute tariffs using other tariff powers that he said Congress had delegated to the executive branch.
While the Trump administration has not provided an accurate accounting of the tariffs collected since Trump returned to the White House, various estimates from outside sources have put the amount at anywhere from $135 billion to $175 billion. The normal procedures for importers to try to collect a refund on tariffs paid involves filing a protest with U.S. Customs and Border Protection or filing a lawsuit in the U.S. Court of International Court of Trade.
As part of her 2026 State of the State address, Hochul proposed that the state provide $30 million in tariff relief to help support impacted farmers across New York. Her office pointed out that for many farmers damage has already been done with them facing higher equipment and supply costs and other major challenges.
A report on the effect of Trump’s tariffs on New York consumers and businesses found that consumers were facing a new effective tariff rate of approximately 21% on imported goods, according to New York State Division of the Budget calculations.
The report noted that Trump’s trade war with Canada has resulted in a dramatic decrease in visitors to New York from Canada. There were nearly a million fewer border crossings between the U.S and Canada in 2025 as compared with 2024. As the top destination for Canadian visitors to the U.S., New York is suffering a disproportionate impact from this decline, the report said. It noted that tourism is the state’s third largest sector, employing one in ten New Yorkers.
The report concluded that small businesses are proving to be particularly vulnerable to the negative impacts of tariffs, as they typically operate on tight margins and have limited flexibility in their supply chains. It said that frequent, unpredictable shifts in federal tariff policies have created a climate of economic uncertainty, discouraging businesses from making long-term investments in New York state.
