Time to end the "Chicken Tax"

V37

V37
I think this tax was a factor in Mercedes plan to build Sprinters in South Carolina.
Sure,...as the article above says, "the 25 percent 'chicken tax' that typically dissuades automakers from importing trucks."

This is why the Ford Transit 4x4, or VW 4x4, or Peugeot 4x4's are not sold here. They're made outside America.

https://www.youtube.com/watch?v=mR9KftbKh6w

By the Way....there is a Sprinter 4x4 in this video
 
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lindenengineering

Well-known member
Yes you can Mark---BUT----
I must be 25 years old!

The Chicken Tax might have shielded the major US manufacturers during the Johnson period but its lost its significances with the Nafta agreements. Besides its probably nowadays an impediment to lost US exporting opportunities since reciprocal retaliatory tariffs have been implemented against similar US products like pick up trucks.
In some respects its a bit like UK exports and manufacture of electronics in the 1930's (mostly MIL stuff).

The UK had a chance to clean up in that area of dominance but lost it.

In short the trend is simply build it locally in the US as PK or CKD, sell major components & sub sections or if the numbers don't work build it in Canada (aka same) or with our "vecinos" en Mexico! Plus a combo of all three!
Ford has been historically very good at looking at chinks in the clauses and exploiting the words of the law.

Interestingly these Pacific Rim trade pacts might pull down the "wall" but most of the agreements are political and not really trade related. The same can be said of the same endless discussions with the European Union.

Having been involved in this with UK made transit buses and train (light rail) exports to the US I have had some experience of it first hand!
In fact here is fairly good up to date article on it which is worthy of perusal!

http://news.pickuptrucks.com/2014/04/current-negotiations-could-end-chicken-tax.html
Makes for some interesting reading
Dennis
 

Boxster1971

2023 Sprinter 2500 144wb AWD
I'm sure Ford, GM and Chrysler will lobby to keep their lead on big money makers -- pickup trucks.
 

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