Category: Transport

Source: US State of New York

arlier today, Governor Kathy Hochul was a guest on Bloomberg TV’s “Balance of Power”.

AUDIO: The Governor’s conversation is available in audio form here.

A rush transcript of the Governor’s remarks is available below:

Kailey Leinz, Bloomberg TV:  President Trump announcing steep tariffs on all exporters to the US yesterday with rates ranging from 10 percent to over 50 percent, which his administration says aimed to counter large trade imbalances with other countries. But the levies are also expected to have consequences here at home. And for a look at how individual states are bracing for them, we turn now to the Democratic Governor of New York, Kathy Hochul.

Governor, thank you for joining us here on Bloomberg TV and radio. I’m curious what you’re already hearing from businesses and companies in your state and whether they are already suggesting they are making changes on hiring practices on pricing, for example, or if they’re playing, “wait and see” here to see whether or not this actually sticks.

Governor Hochul: Thank you for having me. No, the impact is immediate. I mean, this is nothing short of the largest tax increase in American history. And the impact on New York — let me explain. This is the 10th largest economy in the world. We have Wall Street, we have farms, we have a border of 450 miles with Canada, so we have a trade relationship with Canada of over $50 billion.

So already, here’s what we’re seeing: Droppings in bookings from Canadians coming to New York State. A huge source of tourism all the way to New York City, but certainly my hometown in Buffalo, where Canadians come over all the time and they go to our sport events. They shop at our stores.

So here’s number one: Sales tax revenues are dropping already. Now, speaking to a farmer in a very Republican part of our state — I’d call it Stefanik Country in the North Country — he told me that as a dairy farmer, he gets his shavings, he gets his fertilizer, he gets all these products from Canada and his costs are going up $10,000 a month. A dairy farmer. Not the total cost, but an increase of $10,000 a month.

So, there’s such anxiety now. Not to mention the Walmart mom who goes to Walmart like I did when my kids were little — that giant grocery cart with the oversized diapers and lots of baby food and paper towels — that’s going to have an impact on people shopping at Walmart who come out of the trailer park like the one my parents grew up in.

So I have to say, it goes all the way from Wall Street to the farmers to the small towns, Main Street to Wall Street — there is a cataclysmic effect on this, and New Yorkers are reeling right now.

Joe Mathieu, Bloomberg TV: I hear where you’re coming from here Governor. I wonder if there’s a silver lining in any of this for the great industrial towns of your state from the last century: Syracuse, Rochester. Based on what we’re hearing from this administration, they will again have a seat at the manufacturing table. Do you believe that?

Governor Hochul: I hope so, but we already have advanced manufacturing coming to New York. I literally got off the phone with someone who’s in a pharmaceutical business looking all over the world, and he is very likely with the deal I’m making, to come to New York.

So we have advanced manufacturing, we have pharmaceuticals. In fact, I was able to lure Micron with a $100 billion investment, the largest in our nation’s history, to build semiconductors in the Syracuse area. So we are already reimagining our economy based on manufacturing. So that’s important to me.

I come from Buffalo. I mean, my dad worked at the steel plant. I know how hard it is when businesses leave, but we are backfilling in with businesses that we think will have a long-term future, and they’ll be affected by this, the component parts to what they’re building and the supply chain. They’re going to see an increased cost, not just because they’re in New York, but because they’re in America.

And that’s what worries me. There could be a silver lining, as you say. I don’t know how old I’m going to be when that happens. I mean, what are they going to do? Start building factories now? And, you know, I just don’t know. All I know is that people were promised lower prices on Inauguration Day, and guess what? They’re going up.

Kailey Leinz, Bloomberg TV: Well, is there anything you can do about that Governor? Regardless of what policy is set by the federal executive, you as a state executive, are there levers you can pull to help offset any economic pain that results from these tariff policies?

Governor Hochul: Well, I’ve had to have this conversation. I’m assembling some of the smartest economists in the country to help give us advice on this. This is an unforced error. This did not have to be this way. And yes, you can use tariffs as a tool to negotiate or, you know, have something in moderation. But this is so extreme and so immediate that I need to figure out with some real experts on what this is going to do.

But I’ll tell you what’s going to happen. Wall Street goes down, next January, when I’m looking at my revenues that are coming in from Wall Street bonuses where I fund a lot of the generous programs we hear in our state, that’s going to be lower. I’m going to have to look at where we’re going to have to cut there. I have to look at the whole picture.

Now in the context of the Budget, I’m negotiating the revenues I count on, the revenues I’m going to lose, but also the impact on our businesses who may not be expanding now. So I have to find ways we can use state resources to say, “We’ll help calm it down.” What can I do for a farmer in upstate New York? That’s a good question. I don’t want them to suffer. Thirty two thousand farms in our state. People think of New York as just Manhattan. I know they do. But it’s so much more than that. An important part of our economy is our agricultural sector.

So all of our sectors are going to be hurt. So I have to look at our Budget, what we can do to help other incentives for economic development. And as I’m doing, I’m trying to put money back in people’s pockets. I mean, the average New Yorker will have $6,000 less in their pockets because of these tariffs. And that’s an opinion by a number of economists.

I have a budget I’m negotiating right now that puts $5,000 back in people’s pockets: Child tax credits, a middle class tax cut, the largest in 70 years, the largest tax rate decrease in 70 years, and an inflation rebate for people who paid so much more in sales tax. So I have a path to put all this money back in their pockets. But you know what’s really sad? That’s going to be sucked right out with $6,000 that they’re going to lose because of tariffs. So I’ll keep fighting, I’ll keep doing what I can do, but this is a real hit on New Yorkers.

Joe Mathieu, Bloomberg TV: So it sounds like the potential for state tax cuts in the year ahead depend on tax receipts from Wall Street, Governor. Is that right?

Governor Hochul: Oh, it always does. I mean, I’ve not had an increase in our income tax because I want to make sure high net worth people know we appreciate them and I don’t want to drive them out of our state. So that’s my view.

Joe Mathieu, Bloomberg TV: But does it increase the urgency behind extending the Trump tax cuts and eliminating the SALT cap? Because a lot of Republican members of Congress in your state are working to do that now.

Governor Hochul: Well, they better be successful. We want to make sure that the SALT deduction, state local tax deduction, is brought back 100 percent. Absolutely. And I have seven Republican members of Congress — you better win on this one because you promised your voters you would.

Kailey Leinz, Bloomberg TV: Governor, before we let you go, our time is short here, but I do want to ask you about New York City Mayor, Eric Adams, who of course had charges against him dismissed. He now says he will continue his mayoral campaign for reelection, but as an independent. During the height of that controversy, you said it will be up to the voters to choose who they want to be Mayor. You opted not to force him out of the position. Even if you’re not going to endorse anyone, would you encourage New Yorkers to reconsider a vote for him as an independent?

Governor Hochul: All I’m going to say is my job is to work with whomever’s in the White House — I have a relationship with Donald Trump based on our mutual interest in building infrastructure and working on projects like Penn Station, but not allies when I don’t support many of his policies. Same thing with the Mayor of New York, no matter who is sitting in that seat that the voters of New York decide they want me to work with. I will do that, but always stand up for the rights of the entire state and focus on my agenda of affordability and public safety.

Joe Mathieu, Bloomberg TV: It’s great to have you with us, Governor. Come see us again. New York Governor Kathy Hochul with us on “Balance of Power”.

Governor Hochul: Will do. Thank you.

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