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MTA Says $1 Billion in Federal Tariffs Threaten Fleet Modernization

State officials have asked U.S. trade authorities for emergency tariff exemptions to prevent cuts to planned vehicle orders, production jobs, service improvements

Overview

  • An MTA analysis identified about $1 billion in added tariffs on imported rail and bus components that would reduce the buying power of a $23 billion capital plan.
  • The agency says that extra cost could equal the value of more than 250 subway cars, roughly 1,000 buses, 150 LIRR M9‑A cars and most planned Metro‑North passenger cars.
  • Newer vehicles such as R211 subway cars meet Buy America domestic‑content thresholds but still rely on specialized imported parts for which no U.S. alternatives exist, exposing orders to tariffs.
  • Governor Kathy Hochul formally sent emergency exemption requests to U.S. trade and commerce officials, and federal review of those requests is pending.
  • If exemptions are denied, officials warn the likely effects include reduced vehicle deliveries, delayed service improvements, and lost manufacturing jobs in New York that support regional mobility.