"Chicken Tax" Imposed By LBJ 60 Years Ago Still Impacts Pickup Sales

As Americans begin to feel the effects of President Donald Trump’s tariffs, a levy imposed by President Lyndon B. Johnson more than 60 years ago may offer clues about how long such trade measures can shape the economy, Yahoo Finance reported.

To this day, the chicken tax effectively prevents automakers from selling pickup trucks made in Europe or Asia in the U.S. I Photo: Volkswagen

It’s called the “chicken tax,” but it’s levied on pickup trucks.

And it helps explain why Trump’s tariffs could have a long-lasting impact on the U.S. economy, CNN Business also reported. Johnson imposed the chicken tax in 1963 in retaliation for European tariffs on American chicken exports.

Although the original dispute is long gone, the 25% import tax remains in effect today — a striking example of how tariffs can outlive their original purpose and permanently reshape global trade patterns.

To this day, the chicken tax effectively prevents automakers from selling pickup trucks made in Europe or Asia in the U.S.

As a result, most pickups sold in the U.S. are built in North America — a boon for domestic automakers but a burden for consumers, who face higher prices and limited choices.

The tax has also led to creative — and sometimes convoluted — strategies by automakers attempting to circumvent it.