When The 25% Tariff On Imported Trucks Is Lifted - What Would It Do To The American Stranglehold Of The Pickup Market?

In the background of the free-trade debate that has raged in Washington this summer, a sacred cow of U.S. auto and trade policy is under threat.

The 25 percent tariff imposed on imported pickups and commercial vans, known as the "chicken tax," stands to be significantly rolled back through big-ticket trade deals being hammered out with Pacific Rim nations and the European Union.

With the legislative pieces now in place, the Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership are closer to becoming reality. The Pacific Rim deal seeks to create a 12-nation free-trade bloc encompassing some 40 percent of the world's economy. The EU deal would lower trade barriers and seeks to align regulations between the U.S. and EU.

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MDarringer - 6/29/2015 10:19:25 AM

+1 Boost

Literally nothing to full-size pickups. Toyota has not been successful against the F150, Ram, Silverado, and Sierra. If Toyota can't crack the code, I don't see any capable of doing likewise.

The biggest threat will be to the car-based, crossover pickup market that must happen for the sake of CAFE. American brands are not being proactive.

That is where the battle would be.

dumpsty - 6/29/2015 2:35:04 PM

+1 Boost

Concerning the "chicken tax", the biggest threat to the US automakers would be commercial & luxury consumer trucks from European automakers. Also, it would be less of a need to build many of the larger vehicles in the US or N.A. which may effectively see some planned assembly sites disappear.