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Gov. Hochul Warns Canada Tariffs Will Raise Costs

Higher prices and mounting pressure on New York businesses are among the potential fallout from escalating tariffs on Canadian goods
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Gov. Kathy Hochul used the opening day of the Great New York State Fair in Syracuse on Aug. 26 to warn that escalating tariffs on Canadian goods could raise costs for New Yorkers and put additional pressure on farmers, businesses and consumers.

Hochul focused on New York’s close economic ties with Canada, pointing to cross-border agriculture, manufacturing, automotive supply chains and tourism.

The latest trade measures, including 50% tariffs targeting Canadian vehicles, auto parts and steel, could make it more difficult for New York businesses and farmers to manage rising costs.

“The war with Iran was a deflection because questions around Jeffrey Epstein were getting too hot, so we go to war with Iran. Now the questions around Iran are getting too hot, so now we're going to war with Canada. See the pattern? This is going to do nothing more than make Americans' lives more painful, grocery prices, dairy prices, gas prices and energy prices,” said Gov. Kathy Hochul.

The warning comes as trade tensions between the United States and Canada continue to escalate. The Associated Press reported that Canada announced retaliatory tariffs on more than 700 U.S. products after President Donald Trump imposed 50% tariffs on about $20 billion worth of Canadian goods.

The dispute threatens deeply integrated supply chains, particularly in the auto and energy industries.

The impact could extend to everyday expenses, including groceries, dairy products, gasoline and energy. She also highlighted concerns for New York farmers, saying uncertainty around trade and the cost of agricultural inputs could discourage younger people from entering the industry.

The governor also renewed her demand for tariff refunds for New Yorkers. Her administration has estimated that tariffs have added about $13.5 billion in costs statewide, with the average household facing roughly $1,751 in additional expenses.

The push for refunds follows the Supreme Court’s February ruling against many of Trump’s earlier tariffs. According to AP reporting, businesses that paid those tariffs can seek refunds through the federal process, although the refunds are being directed to the importers that paid the duties rather than directly to consumers.

Hochul said she will continue pressing for relief as the trade dispute develops, while New York prepares to support farmers and businesses facing the effects of higher costs and continued uncertainty.




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