Gov. Hochul Demands $13.5B Refund for Illegal Tariffs, Calls It a Hidden Tax on New Yorkers

February 25, 2026
Gov. Hochul Demands $13.5B Refund for Illegal Tariffs, Calls It a Hidden Tax on New Yorkers
  • 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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