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MTA says tariffs could add $1 billion to railcar and bus purchases

MTA says tariffs could add  billion to railcar and bus purchases

Federal tariffs could add an estimated $1 billion to the Metropolitan Transportation Authority's planned purchases of subway cars, commuter railcars and buses, according to an analysis presented to the agency's board in September. The figure is a projected cost, not money already spent.

Gov. Kathy Hochul said Sept. 30 that she had asked U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer to exempt transit vehicles and their components from the tariffs. The request follows the MTA analysis, which the governor's office said covers $23 billion in vehicle purchases under the authority's 2025-29 capital plan.


The agency says the potential extra cost is roughly equivalent to more than 250 subway cars, about 150 Long Island Rail Road cars or nearly 1,000 buses. Those are comparisons of purchasing power, not a list of vehicles the MTA has canceled. The authority has not announced that the tariffs will cause a specific service cut or delay.

The MTA operates New York City transit, the Long Island Rail Road and Metro-North Railroad. The proposed purchases include vehicles for those systems, but the authority does not operate Finger Lakes transit. The announcement did not identify an effect on local routes or fares.

According to the governor's announcement, the MTA's newer R211 subway cars are assembled in Nebraska and Yonkers, with more than 75% of their components made domestically. The state says specialized imported parts remain necessary for some vehicles, exposing those purchases to tariffs despite meeting federal domestic-content rules.

The requested exemption requires federal action. Hochul's office did not say whether Commerce or the U.S. trade representative had responded. Until procurement prices and tariff treatment are settled, the $1 billion remains the authority's estimate of potential added costs.