Sunday, April 13, 2025

Kei

The effect of tariffs can be dramatic as illustrated by the chicken tax. In 1960 President Johnson imposed a 25% tariff on all pickup trucks in retaliation for countries taxing US chicken products. This became known as the chicken tax. This stopped almost completely the import of pickups. In 1992 NAFTA allowed imports of pickups from Mexico and Canada but only 7,000 were imported from outside of North America while three million were made in North America. Japan produces a small pickup called the Kei. These can be imported to the US without tax if they are 25 years old or older. The cost would be 3 to 5 thousand depending on condition. Last year 7,000 were imported which was up from 1,500 in 2018.

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