The Chicken Tax is a 25% tax on all imported "Light Duty" trucks, including small pick-up trucks and utility vans. This is comprehensive, to the point where Ford must ship their vehicles from oversea factories disassembled to avoid this tax.
The tax is harmful to trade, companies such as Volkswagen and Toyota are unable to compete against American car companies. American car companies, without foreign competition, have stagnated their truck designs, turning many potential buyers to crossover SUVs, often times made by the same foreign companies who cannot bring over their trucks, as an alternative.
The tax is an outdated piece of legislation and the perpetuation of if is a slight to foreign relations with countries such as Germany and Japan, the latter could use the economic boost.



