Gov. Hochul Demands $13.5B Refund for Illegal Tariffs, Calls It a Hidden Tax on New Yorkers
February 25, 2026
New York Governor Kathy Hochul is demanding $13.5 billion in federal reimbursements for tariffs declared illegal by the Supreme Court, arguing they cost the average New Yorker roughly $1,750 to $1,800 in the past year.
Treasury Secretary Scott Bessant indicated that tariff refund issues will be addressed through the lower courts, signaling ongoing legal adjudication.
Hochul says the tariffs imposed by the Trump administration acted as a consumer, small-business, and farmer tax in New York and should be fully refunded by the federal government.
The White House dismissed the governors’ restitution demands and defended the tariffs, accusing Democrats of political posturing.
Analysts from the Penn Wharton Budget Model have suggested that more than $175 billion in U.S. tariff revenues could be subject to refunds.
Despite a court ruling, Trump announced new tariffs under a different framework, including a 10% import duty that took effect, with earlier threats of higher rates lingering.
Hochul is joined by Illinois Governor JB Pritzker and California Governor Gavin Newsom, all three Democrats and potential 2028 presidential contenders, in calling for refunds after the Supreme Court ruling.
The tariffs, enacted last year, were criticized for raising costs for households and harming small businesses, with Hochul estimating about $1,751 in added costs per New York household over the past year.
Beyond New York, multiple companies including FedEx seek compensation for tariffs, and the EU has paused ratifying a new U.S. trade deal pending discussions, with European leaders weighing in.
Summary based on 4 sources
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Sources

Reuters • Feb 24, 2026
New York calls for $13.5 billion tariff refund from Trump administration
Investing.com • Feb 24, 2026
New York calls for $13.5 billion tariff refund from Trump administration
Economic Times • Feb 25, 2026
New York calls for $13.5 billion tariff refund from Trump administration