Jump to content
Create New...
  • 💬 Join the Conversation

    CnG Logo SQ 2023 RedBlue FavIcon300w.png
    Since 2001, Cheers & Gears has been the go-to hub for automotive enthusiasts. Join today to access our vibrant forums, upload your vehicle to the Garage, and connect with fellow gearheads around the world.

     

  • William Maley
    William Maley

    U.S. Could Eliminate The Chicken Tax

    William Maley

    Staff Writer - CheersandGears.com

    August 8, 2013

    The Chicken Tax, a fifty year-old tariff put in place to tax 25 percent on all imported trucks could be gone in the near future.

    The U.S. is currently in talks currently in negotiations with the the Trans-Pacific Partnership over free-trade agreements. One of the countries in the Trans-Pacific Partnership is Japan, a country that currently imposes strict restrictions on U.S. imports. The U.S. is using the elimination of the Chicken Tax as bargaining chip in the negotiations to hopefully open up and let domestic automakers come in.

    “The automakers see it as some leverage to getting other countries to open up their markets. The tariff doesn’t seem to make any sense now, particularly since the industry has globalized, or at least regionalized, but this is what happens with transfer programs, with protectionism, with social safety nets," said Daniel Ikenson, director of the Cato Institute’s Herbert A. Stiefel Center for Trade Policy Studies.

    Cases in point:

    • Honda, Nissan, and Toyota build their trucks in U.S.
    • Ford and for a time Chrysler used a loophole in the Chicken Tax to bring their vans into U.S.

    The Chicken Tax has also hurt automakers. For example, MINI pulled the Clubvan in the U.S. partly due to the Chicken Tax.

    If the U.S. is not successful in their negotiations, the Chicken Tax could stay on the books for another 25 to 30 years.

    Source: The Detroit News

    William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

    User Feedback

    Recommended Comments

    I would rather they focus on streamlining the tax code, cut the pork out of the budget, reduce the over abundance of military bases around the world and term limits. Two terms for Senators and 6 for house members. This way both parts get 12yrs to make a difference before having to go back to the private sector and their benefits package and retirement perks. All goes away and is folded into Social Security and Medicaid. This way they get the same as the rest of the country. Then they will have inspiration to fix things for good.

    • Agree 1
    Link to comment
    Share on other sites

    I would rather they focus on streamlining the tax code, cut the pork out of the budget, reduce the over abundance of military bases around the world and term limits. Two terms for Senators and 6 for house members. This way both parts get 12yrs to make a difference before having to go back to the private sector and their benefits package and retirement perks. All goes away and is folded into Social Security and Medicaid. This way they get the same as the rest of the country. Then they will have inspiration to fix things for good.

    I generally agree with most of these ideas on principle, but that requires replacing our political class first. Now as for the chicken tax, the real elephant in the room is that the USA is almost unique in our almost laissez-faire free market in automobiles and no one nation does this. Japan (and China) have essentially used the US policy of near free trade to leave economic poverty to join the global middle class. Japan became wealthy (until 1990) because of those same policies. 90% of what is wrong is that other nations protect our industries and the USA does not. They need to change their stripes long before we should ditch the chicken tax.

    • Agree 2
    Link to comment
    Share on other sites

    Riviera74 I do agree with you that it would be nice to have the rest of the world have a more open free market system, but they do fear the US ability to bring things in fast and cheaper than local companies could grow. I think the chicken tax needs to stay on more items forcing them to be built here or pay up.

    Link to comment
    Share on other sites

    Open market nothing, what we need is fair trade. Declare that we will assess a tariff on any product that is equal to what that country assesses us. If we do that no one can complain that we are being unfair or protectionist.

    • Agree 2
    Link to comment
    Share on other sites

    The problem isn't always tariffs. In the case of Japan, imported cars have to go through hefty inspections that domestically produced cars do not. In China, the companies have to be Chinese based even if they are in joint partnership with a foreign company.

    Link to comment
    Share on other sites

    fair or free trade can't happen in the monetary climate we have.. anyone hear the NPR news (couple weks ago) about how Abe(japan) was inflating the yen and was causing toyota to have that 90+% increase in profits?

    if you want honest trade, start looking at the money(replacements) you use everyday.

    Link to comment
    Share on other sites



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Support Real Automotive Journalism

    Cheers and Gears Logo

    Since 2001, Cheers & Gears has delivered real content and honest opinions — not emotionless AI output or manufacturer-filtered fluff.

    If you value independent voices and authentic reviews, consider subscribing. Plans start at just $2.25/month, and paid members enjoy an ad-light experience.*

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • This kind of blocking of the truth and lack of transparency is hurting, not helping our democracy and tends to say that the Head of Homeland / ICE needs to be arrested and put in jail along with all the rest of the stool Pigeons. Minnesota officials say FBI blocked their access to ICE shooting probe
    • Sad News, ICE is reporting that their agents making a stop to arrest two narco gang members from Venezuela in Oregon had to be shot, they are in the hospital, developing story. 2 shot by federal agent in 'targeted' stop, Portland mayor asks ICE halt operations Portland Mayor Keith Wilson told reporters, "We know what the federal government says happened here. There was a time when we could take them at their word. That time is long past." "We are calling on ICE to halt all operations in Portland until a full and independent investigation can take place," he said. "Our community deserves answers."  
    • Here are some interior views Sensible dashboard with easy to use controls - climate control vents and small touch screen embedded under the cowl ... all Versas have the black and blue trim, so they only offer exterior colors that work with that Push button ignition instead of key inserted into the side of the steering column and various cubby slots to power up Analog gauge for speedo at the right and left (display 1): digital readout Analog gauge for speedo at the right and left (display 2): trip information Analog gauge for speedo at the right and left (display 3): driving aids graphics ... and they're usually telling you something useful Analog gauge for speedo at the right and left (display 4): tire pressure Analog gauge for speedo at the right and left (display 5): DRUM ROLL ... a temperature gauge, which I almost require Pull tabs for everything in close proximity:  trunk release, hood release, and fuel door release Good rear visibility and all around, really - - - - -
    • I was assigned a 2025 Nissan Versa from NY-LGA for the Labor Day weekend.  About 10 years ago, I used to think that Versa was dowdy.  As I got into it and drove around Long Island, Westchester County, and even a little bit of Manhattan (where I parked it on the street overnight for free!) with a friend I'd gone to school with, I came to like this little car. There's nothing overwhelming or remarkable about this last Versa  It's just a straightforward economy car.  It's nimble, slots into small spaces, and, on good pavement, rides smoothly enough for its size.  The ergonomics of the interior make sense - an aesthetically balanced dashboard, simple controls, decent seats in a durable cloth, and good sight lines.  The trunk is roomier than one might think.  The engine is a NA 1.6 liter 4 cylinder driving through a CVT.  And they were able to put this packaging together into a proportionate looking little sedan with an entry price of around $20 K.   The car features a lot of the electronic assists and warnings, as in "standard."  Highway mileage with good uninterrupted steady driving can easily hit the 40 mpg mark, and maybe a tad more.  One would think that, in over a decade, Nissan might have dialed in the reliability of the CVT.  It may not be everyone's favorite transmission, but I'm almost sure they're better than in their teething years. The curtain fell on the Versa without much fanfare.  Production for the U.S. market ceased last month.  Nissan will be keeping the one-up Sentra, which has been (noticeably) refreshed.  I'd say this Versa is a slightly more attractive and likeable option to the recently gone Hyundai Accent and Kia Rio.  Now is its "time to say good-bye." I like(d) it. Front angled view - classic Nissan treatment, nice alloys, and easy to work with Rear angled view - its lines have improved over older model years
    • @oldshurst442 Last nights protests across the country have clearly stirred up Americans and Hopefully the Murdering ICE agent will face his required day in court for his murderous act. Seems some are willing to get more violent as the protestors in Sacramento California broke down the gate at the ICE center and entered.  
  • Who's Online (See full list)

    • There are no registered users currently online
  • My Clubs

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search