Marketplace All-in-One The "chicken tax" and the U.S. auto industry
Apr 9, 2026
John Krafcik, veteran automotive leader and board member at Rivian, shares automotive history and policy perspective. He explains how a 1960s tariff fight led to a 25% tariff that reshaped U.S. truck design and imports. He traces the tariff’s long shadow on pickup economics, market structure, and why full-size pickups stayed dominant.
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Origin Story Of The Chicken Tax
- John Krafcik recounts the 1960s trade spat that created the chicken tax and its long shadow on U.S. trucks.
- Germany taxed U.S. chickens, and the U.S. responded with a 25% tariff on light-duty trucks that still shapes the market today.
Route 66 Conversation Sparked By Car Variety
- David Brancaccio describes a Route 66 road trip where conversations about the chicken tax came up among automotive veterans.
- He rode in vehicles ranging from a 1966 Oldsmobile to a Rivian-connected EV while discussing transatlantic protectionism.
How The Tax Shaped U.S. Truck Market
- The chicken tax reshaped U.S. vehicle offerings by keeping low-priced imported trucks out of the market.
- That protection preserved full-size pickups and vans as dominant segments and limited adoption of smaller, cheaper imports.