The Chicken Tax is a 25% tariff placed on light trucks manufactured outside the USA.
(This expensive tariff was put into place in 1964 to retaliate against Germany imposing a 50% tariff on exported frozen chicken.)
And now, the Chicken Tax is apparently back in the news (I do not watch the news, but I have been told about it)…
Because U.S. government officials are threatening to impose this stiff tariff on ALL new cars imported into America. (I would be stunned if this panned out… just as I would be stunned if a wall was built across our American border.)
This video does a good job getting into the weeds of the Chicken Tax:
Of course, this Chicken Tax has backfired over the decades. Since there is little foreign competition, US trucks are of lower quality. We know this is (probably) true.. because in the rest of the world, US trucks are not the most popular – not even close.