US Hopes to End Truck Tariff to Promote Competition

Jason Siu
by Jason Siu

The U.S. is looking into ending the 50-year long Chicken Tax, which is a 25-percent tariff on all imported trucks.

Originally designed to aid American automakers, the U.S. is using the Chicken Tax as a bargaining chip to help U.S. automakers to increase their presence in emerging markets. The country is currently negotiating free-trade agreements with the Trans-Pacific Partnership, a group of a dozen countries that include Japan.

SEE ALSO: MINI Clubvan Scared Away by Chicken Tax, Slow Demand

Many feel that the Chicken Tax has attributed to rising truck prices because of a lack of true market competition. Last year, 1.9-million pickup trucks were sold in America and only about 200 of them were hit with the 25-percent tariff. Essentially, the U.S. plans to keep the Chicken Tax in place unless Japan agrees to open its market and remove trade barriers that discriminate against the U.S. If Japan doesn’t agree, experts believe the tax could stay in place for another 25 to 30 years.

[Source: Detroit News]

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Jason Siu
Jason Siu

Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.

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