Governor Kathy Hochul sounded the alarm this week over sweeping new tariffs announced by President Donald Trump. She called them “nothing short of the largest tax increase in American history” and warned they will devastate households, farmers, and businesses across New York.
In an interview on Bloomberg TV’s Balance of Power, Hochul described how tariffs—ranging from 10% to over 50%—could gut local economies, destabilize state revenues, and reverse recent progress on affordability. “It goes all the way from Wall Street to the farmers to the small towns, Main Street to Wall Street,” she said. “New Yorkers are reeling right now.”
Hochul said the impact is already visible. Tourism from Canada, a major source of income for upstate towns like Buffalo, is dropping. At the same time, farmers are facing higher costs. One North Country dairy farmer told her he now pays $10,000 more each month for basic supplies like shavings and fertilizer.
The Governor also warned the tariffs could hit state finances hard. Wall Street bonuses—key to state tax revenues—are expected to shrink. That could reduce funding for schools, healthcare, and social programs. “I have to look at the whole picture,” she said. “What can I do for a farmer in upstate New York? That’s a good question. I don’t want them to suffer.”
Hochul defended her current budget plan, which includes $5,000 in household relief through child tax credits, middle-class tax cuts, and inflation rebates. But she acknowledged those gains could be erased by an estimated $6,000 in added costs from tariffs.
While she left room for long-term benefits to manufacturing, Hochul said New York is already investing heavily in key industries. She pointed to Micron’s $100 billion semiconductor facility in Syracuse as proof the state doesn’t need tariffs to attract business. “We’re already reimagining our economy,” she said.
She also renewed her call to restore the full federal state and local tax (SALT) deduction. That change would ease the burden on many middle- and upper-income New Yorkers. Hochul urged Republican members of Congress from the state to deliver. “You promised your voters you would,” she said.
Hochul emphasized that her top priorities remain affordability and public safety. Despite the new economic challenges, she pledged to keep fighting. “This is a real hit on New Yorkers,” she said. “And I’m going to keep doing everything I can to soften that blow.”
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