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Trump's tariffs could make MTA's sky-high construction costs even higher, agency chair says


By

Catalina Gonella

and

Ramsey Khalifeh

Published Apr 7, 2025


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MTA Chair Janno Lieber next to NYC Transit President Demetrius Crichlow and Queens Borough President Donovan Richards.

 

Catalina Gonella


By

Catalina Gonella

and

Ramsey Khalifeh

Published Apr 7, 2025


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MTA Chair Janno Lieber warned on Monday that President Trump’s latest round of tariffs could increase the agency’s construction costs, which are already among the highest of any transit system on the planet.

Lieber said his team was reviewing the agency’s $65 billion five-year construction plan and noted that even the MTA’s trains, manufactured in the United States, rely on imported parts from countries subject to Trump’s new levies, which range from 10% to 50%.

“When you’re dealing with complex technology, there is a worldwide supply chain,” Lieber said at a news conference. “Even when we build subway cars in New York State … there are parts that come from all over the world.”

Lieber said it’s too early to tell whether the duties will inflate the cost of the MTA’s construction plan, which still requires more than $33 billion of funding from lawmakers in Albany. But he did note the new fees, which have already sent the global economy into a panic since Trump announced them last week, “could have significant impacts” to the MTA’s operations.

According to online tracker Import Genius, the MTA imports components like rubber, bearings and metals from several countries subject to the tariffs, including Malaysia, Singapore, Brazil and China. Tariffs serve as a tax or duty on imported goods. Businesses typically move that cost onto consumers, raising the prices of products in the destination country.

The MTA’s construction department under Lieber has celebrated progress in reducing its construction costs. At the same time, the agency is also planning a $7.7 billion extension of the Second Avenue Subway into East Harlem. That project would be the costliest per-mile extension of a subway line ever built, according to researchers from New York University’s Transit Cost Project.

NYU economics professor Joseph Foudy said a global recession sparked by the new tariffs posed an even greater risk to the MTA’s bottom line. Following the Great Recession of 2008, the MTA said its ridership and revenue from dedicated taxes slipped, prompting transit officials to impose cuts to subway service.

“The MTA is now facing a risk on at least three sides,” Foudy wrote in an email to Gothamist. “They were already facing administration plans to stop congestion pricing. A tariff war threatens to drive up prices for new trains and equipment vital to increase reliability. At the same time, it may lead to a recession that would simultaneously drive down ridership and threaten state and city finances incredibly dependent on the health of Wall Street.”

Tagged

new york city

queens

Politics

transportation


Catalina Gonella

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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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Gothamist is funded by sponsors and member donations


Gothamist is funded by sponsors and member donations


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