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Auto Tariff Standoff May Torpedo the Chicken Tax

(Credit: © Mercedes-Benz)

Latest Car News

Auto Tariff Standoff May Torpedo the Chicken Tax

Panic seems to be in the air quite a bit lately. This panic has penetrated the auto industry too, first during the election when Donald Trump threatened Ford for making cars like the Fiesta in Mexico. Then, Ford decided to ditch cars. Coincidence? Who knows.

Anyway, President Trump has, in his quirky little ways, decided to make it clear that the vehicle tariffs levied by European nations on U.S. vehicles will no longer be tolerated. Plenty of news outlets have spun the information this way and that, but the fact of the matter is the playing field isn’t level. Some doomsayers in the auto industry have declared the sky is falling, that the government will ban all European cars in the U.S., and so forth.

A happy thing might come out of all these threats. First, Germany has motioned it’s willing to drop all automotive tariffs, but only if the U.S. does the same. That seems fair, and it would mean the Chicken Tax would be a goner.

That means the 25 percent tax on pickup trucks, vans, and other light trucks would be no more. Finally, you could buy the Mercedes X-Class of your dreams, or a Unimog in preparation for the zombie apocalypse.

If you’re a free-market champion, this is a good thing. Consumers would have more choices, and that should lead to better and hopefully more affordable options.

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