Political tensions in the United States have escalated again as New York Governor Kathy Hochul publicly demanded that the Donald Trump administration return $13.5 billion in tariff revenue to the people and businesses of her state.
The demand came after the US Supreme Court overturned the massive tariffs that Trump had previously introduced upon returning to the White House.
The tariffs, dubbed ‘Liberation Day’, were imposed on most countries in the world, but received strong opposition from businesses and several states who claimed that they burdened the domestic economy.
According to Hochul, the policy has significantly increased the cost of living.
The average New York household is estimated to have incurred an additional cost of around $1,751 over the past year.
He described the tariffs as a hidden tax that ultimately falls on consumers, small businesses and farmers.
New York is not alone in this.
Illinois Governor JB Pritzker and California Governor Gavin Newsom have also called for the money to be returned after the court’s decision.
All three Democrats are also seen as potential candidates in the 2028 US presidential election.
However, the White House has rejected the claims and defended the use of tariffs as a strategic economic measure.
Its spokesman described the criticism as a purely political attack.
Meanwhile, an analysis by Penn Wharton Budget Model estimates that more than $175 billion in tariff revenue nationwide could be eligible for repatriation, making the issue potentially the largest fiscal dispute in modern US history.
