One of the lesser know details of the controversial free trade agreement that recently squeaked through Congress is the elimination of the Chicken tax. This 25% tax on imported pickups has given American manufacturers the upper hand in selling pickups in America. Now, there are questions as to how this new agreement will affect imports of smaller, less expensive pickups which, because of the tax have up to this point been unprofitable for foreign manufacturers.
In the past, foreign manufacturers had to either pay the tax or set up plants in America giving Americans jobs. Now, if the tax is rescinded, foreign companies which manufacture a lot of smaller, less decked out pickups stand to have a better chance of bringing their products to the U.S.
Is this a good thing? We will have more choices and American manufacturers will have a lot more competition. Jobs may be lost if pickups do not have to be manufactured in America. The American auto industry is up in arms at the thought of losing their advantage. They want to keep selling $50K pickups to Americans. What happens to them if Americans have the choice of $25K trucks?
Japan is also in the middle of this. They tax imports heavily in Japan. They built plants here so they could sell in America. American companies want Japan to open up their borders to American trucks. It's another case of rich companies wanting it all for themselves. Thoughts?
Here are a few of the possible truck variations we could see.
http://www.autonews.com/article/20150629/OEM/306299968/after-chicken-tax-a-flood-of-foreign-trucks?
In the past, foreign manufacturers had to either pay the tax or set up plants in America giving Americans jobs. Now, if the tax is rescinded, foreign companies which manufacture a lot of smaller, less decked out pickups stand to have a better chance of bringing their products to the U.S.
Is this a good thing? We will have more choices and American manufacturers will have a lot more competition. Jobs may be lost if pickups do not have to be manufactured in America. The American auto industry is up in arms at the thought of losing their advantage. They want to keep selling $50K pickups to Americans. What happens to them if Americans have the choice of $25K trucks?
Japan is also in the middle of this. They tax imports heavily in Japan. They built plants here so they could sell in America. American companies want Japan to open up their borders to American trucks. It's another case of rich companies wanting it all for themselves. Thoughts?
Here are a few of the possible truck variations we could see.
http://www.autonews.com/article/20150629/OEM/306299968/after-chicken-tax-a-flood-of-foreign-trucks?
