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MTA says Trump's tariffs added $1B to cost of NYC's new train cars, buses
By
Ramsey Khalifeh
Published Sep 30, 2026
Modified Sep 30, 2026
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Marc A. Hermann / MTA
By
Ramsey Khalifeh
Published Sep 30, 2026
Modified Sep 30, 2026
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The MTA on Wednesday said President Donald Trump’s tariffs on foreign imports are on track to add $1 billion to the price of New York’s new train cars and buses.
The transit agency's vehicles are all built in the United States but rely on components manufactured abroad. MTA officials said during a board meeting that Trump’s tariffs on steel, aluminum, copper and other materials inflated building costs and threatened to “dilute the value” of the MTA’s five-year construction plan.
“Today’s tariffs on American-made rolling stock are diluting the American taxpayer’s investment by punishing manufacturers for sourcing components they cannot buy anywhere else,” said Jessie Lazarus, the head of the MTA’s rolling stock program.
Lazarus noted some of the components needed to build New York’s rail cars are so specialized they are only manufactured in countries like carbon steel from Japan, fan motors from Italy and electronic parts from Taiwan.
MTA officials said the agency is currently overseeing the purchase of $23 billion worth of train cars and buses, and the extra $1 billion reflects additional costs they expect to be imposed by the tariffs.
The price to build new subway cars has skyrocketed by 30% since Trump returned to office in January 2025, according to the MTA.
Gov. Kathy Hochul on Wednesday sent a letter to U.S. Commerce Secretary Howard Lutnick demanding the White House exempt the MTA from any tariffs on components needed to build the MTA’s vehicles. She pointed out that the MTA complies with federal “Buy America” mandates requiring at least 70% of final products to be produced domestically.
“Donald Trump’s reckless trade war does more than just raise prices for New York families, it severely threatens government’s ability to deliver on big, ambitious projects,” Hochul said in a statement. “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.”
During his 2024 campaign, Trump promised to impose sweeping tariffs on imported goods to spur domestic manufacturing. He has imposed tariffs on dozens of countries since returning to office, most of which have been struck down as unconstitutional by federal judges. He’s repeatedly imposed new tariffs after courts ruled previous ones were unlawful.
Lazarus said the MTA could avoid these new costs if the feds grant the exemption Hochul requested Wednesday.
“This exemption, if we’re able to achieve it, would allow us to continue our planned level of investment in American-made rolling stock,” she said.
When asked about Hochul's letter, White House spokesperson Olivia Wales did not say whether the federal government would give the MTA a tariff exemption but took the opportunity to criticize New York's transit system.
“Both MTA and New York have long been incompetent and poor stewards of taxpayer money – with mismanagement driving chronically overbudget and behind-schedule projects," Wales said in a statement. "Democrats should stop attacking how President Trump is delivering historic trade and investment deals and instead focus on cleaning up their own act.”
This story was updated with a comment from a White House spokesperson.
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new york city
transportation
Ramsey Khalifeh
Ramsey Khalifeh is a transportation reporter on the NYC Accountability desk covering the largest transit system in the country. He was previously a general assignment reporter at Gothamist and worked on the Boston Globe's metro and copy desk. Got a tip? Email [email protected]
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