Key Points:
- Governor Hochul requested a $13.5 billion refund from the Trump administration.
- The demand follows a Supreme Court ruling striking down global tariffs.
- Hochul claims the tariffs cost average NY households $1,751 each.
- Economists estimate total national refunds could exceed $175 billion.
New York Governor Kathy Hochul demanded on Tuesday that the Trump administration return $13.5 billion to her state. She argues that the federal government owes this money after the U.S. Supreme Court struck down President Donald Trump’s controversial global tariffs. Hochul called the refund necessary to fix the financial damage caused by the taxes, which the courts deemed illegal.
Last year, Trump imposed broad tariffs on most countries shortly after returning to office, a move he labeled “Liberation Day.” While the administration claimed this would help the economy, Hochul says the reality was much harsher for New Yorkers. She estimates that these extra costs forced the average household in her state to pay an additional $1,751 over the last year.
“These senseless and illegal tariffs were just a tax on New York consumers, small businesses and farmers,” Hochul stated. She insisted that because the highest court ruled against the policy, the government must issue a full refund immediately.
Hochul is not fighting this battle alone. She joins Illinois Governor JB Pritzker and California Governor Gavin Newsom, who made similar demands last week. Political analysts note that all three Democratic governors are likely contenders for the 2028 presidential election, adding a layer of political rivalry to the financial dispute.
The White House wasted no time pushing back. Spokesman Kush Desai dismissed the governors’ complaints as “meaningless popcorn headlines.” He argued that President Trump took real action while Democrats only talked about issues for decades. The administration characterized the demands as pathetic political theater rather than serious governance.
However, the bill for these tariffs is massive. Economists from the Penn Wharton Budget Model estimate that the U.S. government might have to refund more than $175 billion in total collections nationwide. While the governors want the money now, Treasury Secretary Scott Bessent stated that the lower courts will have to decide how and when any refunds happen.
