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[BUSINESS] · United States · 4 sources

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MTA warns Trump tariffs could add $1B to transit vehicle costs

The Metropolitan Transportation Authority (MTA) has warned that federal tariffs imposed by the Trump administration could add $1 billion in costs to its plans for upgrading rolling stock by the end of the decade. The agency is currently managing a $23 billion commitment to purchase thousands of new vehicles, including subway cars, commuter rail cars, and buses.

While the vehicles are assembled in the United States, officials noted that many specialized components are imported. These include Japanese carbon steel, Italian fan motors, and electronics from Taiwan, which are difficult to replace with domestic alternatives. The MTA reported that the cost of constructing new subway trains has already risen by 30% since January 2025.

In response, Governor Kathy Hochul has requested tariff exemptions for transit rolling stock from U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer. The MTA's capital plan for 2025-2029 includes $7.6 billion specifically allocated to replace more than 1,500 subway cars.

Entities

Donald Trump · Howard Lutnick · Jamieson Greer · Jessie Lazarus · Kathy Hochul · Metropolitan Transportation Authority · New York

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