Why America Taxes Imported Pickup Trucks

A 1964 trade war over American chicken created a lasting 25 percent tax on foreign light trucks. This peculiar retaliation against Europe remains a major factor in the U.S. automotive market today.

During the Cold War, tensions flared when France and West Germany placed high tariffs on U.S. poultry imports. President Lyndon B. Johnson retaliated by imposing a hefty tax on European light trucks to protect domestic interests. While the poultry dispute eventually faded, the tax on trucks stayed put. This is why many foreign automakers build their trucks inside the United States to avoid the penalty.