Trump Tariffs Will Add $1 Billion to MTA Train and Bus Costs, Officials Say

Tariffs Drive Up Rolling Stock Costs

MTA officials outlined the financial impact during a board meeting, explaining that duties on imported materials have severely inflated building expenses. The transit agency is currently overseeing the purchase of $23 billion worth of train cars and buses. According to the MTA, the price to build new subway cars has jumped by 30% since Donald Trump returned to office in January 2025.

Jessie Lazarus, head of the MTA’s rolling stock program, stated that the levies punish manufacturers for sourcing components unavailable elsewhere in the United States. Necessary specialized parts include carbon steel from Japan, fan motors from Italy, and electronic components from Taiwan. Lazarus warned that these added expenses threaten to dilute the value of the agency’s five-year construction plan and compromise the American taxpayer’s investment.

New York Demands Federal Exemption

Gov. Kathy Hochul sent a letter to U.S. Commerce Secretary Howard Lutnick demanding that the White House exempt the MTA from tariffs on vehicle components. Hochul emphasized that the transit agency already complies with federal “Buy America” mandates, which require at least 70% of final products to be produced domestically.

Describing the added expenses as a $1 billion tax on transit, Hochul criticized the administration’s trade policies during a public statement. Lazarus noted that securing the requested federal exemption would allow the agency to maintain its planned level of investment in American-made rolling stock without absorbing these inflated costs.

White House Response and Transit Oversight

White House spokesperson Olivia Wales responded to the Governor’s letter by criticizing the management of New York’s transit system rather than addressing the potential tariff exemption directly. Wales stated that the MTA and New York have historically been poor stewards of taxpayer money, citing past mismanagement, budget overruns, and project delays.

The White House defense defended presidential trade and investment strategies, urging local leadership to focus on internal operational reforms. Trump campaigned on sweeping import taxes to spur domestic manufacturing and has repeatedly implemented new duties despite numerous federal court rulings striking them down as unconstitutional.