Killing the ‘Chicken Tax’ on Trucks Will Promote Innovation
What do chickens have to do with trucks? Plenty, if the trucks are not built in North America and are being imported into the U.S. Pickup trucks and other small trucks are subject to a 25% “chicken tax” protectionist tariff imposed by the U.S. in 1963 after Germany tripled the duty on frozen U.S. chicken products coming into that country. Over four decades later, the world has changed and some innovative products are caught in a bind.
Vehicle manufacturing now is clearly a global enterprise, as demonstrated by the sale or pending sale of some of bankrupt Chrysler’s and General Motor’s assets to manufacturers abroad. Parts now are sourced all over the world, and the winners are the ones that offer the most value for the price, no matter where they are made.