What Is the Chicken Tax and How It Inflates Your Vehicle Costs

Most drivers have never heard of the chicken tax, yet it’s one of the main reasons imported trucks and vans cost so much more in the U.S. This tariff was originally passed in 1963 during a trade dispute over poultry, and it still affects what you pay at the dealership today.

If you’re shopping for a pickup or cargo van, especially one made outside the U.S., you’re likely feeling the impact of this decades-old regulation, understanding how the chicken tax works can help you avoid overpaying.

In this guide, we’ll explain the tax, why it still exists, and how you can use tools like MoveCars.com to shop smarter and save money on vehicle shipping, whether you’re buying across state lines or sourcing a hard-to-find model locally.

What Is the Chicken Tax?

The chicken tax is a 25% tariff that the U.S. government imposes on imported light trucks which usually refers to SUVs, vans, and pickups that are under the gross vehicle weight of 8,500 pounds. It was originally enacted in 1963 as a response to a trade dispute with European countries over poultry exports, hence the name.

Nowadays, the tariff on frozen chicken doesn’t exist anymore, but the imposition applied to the production of light trucks remains. This tariff on pickups and commercial vans from countries like Germany or Japan makes them cost thousands more than U.S.-built vehicles. Additionally, the chicken tax applies to the entire vehicle, not just specific parts. As a result, automakers have to either absorb the cost of this old tax, charge it on the final price of the vehicle, or shift to U.S. production.

This tax situation has limited the availability of certain models in the American market. Thus, buyers have fewer choices and higher prices, even if the imported vehicle would otherwise be more affordable.

Chicken Tax Explained: A Historical Overview

In the early 1960s, there was a trade war that caused the chicken tax. When European countries, especially France and Germany, imposed tariffs on U.S. chicken, the U.S. retaliated with tariffs on brandy, potato starch, and light trucks.

Since then, there have been significant changes in the global auto industry, but the U.S. chicken tax remains valid. This 25% tariff stuck, largely due to lobbying from domestic automakers like Ford and GM, who wanted to protect their market share.

Over time, this tax was more related to market dominance than to the original reasons. As a consequence, American truck manufacturers could keep higher prices since they have fewer foreign competitors.

In recent years, international automakers have had to invest heavily in U.S. production facilities just to stay competitive in the market. This is a clear example of how an old tax can continue shaping consumer options and industry strategies.

What Does the Chicken Tax Mean for Vehicle Prices?

The chicken tax significantly increases the cost of importing trucks and vans such as the Mercedes-Benz Sprinter or the Volkswagen Amarok. According to this Wall Street Journal analysis, this results in fewer choices and higher prices for consumers, especially for those in states with less dealership competition.

In specific areas with fewer imported models, dealerships can charge more due to limited supply and lower price pressure. Thus, consumers end up paying more for fewer features.

This also gives U.S. automakers a competitive edge, but not necessarily due to better value. Unfortunately, the chicken tax has discouraged innovation and diversity in the light truck market.

Can You Avoid the Chicken Tax?

Some importers have looked for clever ways to avoid this tax. One of the most common practices is shipping trucks as incomplete chassis or passenger vans, and then converting them into cargo vehicles after they arrive in the U.S.

This practice is technically legal, but it is expensive and time-consuming, which makes it less efficient. Also, this process is risky, and it has been increasingly scrutinized by customs enforcement.

For an average buyer, there’s no practical way around paying the tax. This means that if the truck model is under the chicken tax’s scope, its cost will unavoidably increase. Some automakers that have tried to avoid this tax have faced fines or legal challenges.

This market and tariff situation has led to fewer options on dealer lots, particularly when it comes to affordable foreign-made work vans. To sum up, unless a manufacturer builds the vehicle domestically, which can be a risky and expensive option, the chicken tax is almost impossible to avoid.

What About Used Trucks & SUVs?

The chicken tax is generally applied when a vehicle is first imported. This means that if you’re buying a used truck already in the U.S., the tariff has already been paid. However, the chicken tax still influences the model price even on used vehicles.

Buying a used truck or SUV is the best option to get a better price. If you’re flexible on mileage and condition, buying used becomes even more affordable. However, models affected by the chicken tax often have higher prices in regions with limited inventory.

Another thing that is important to take into account is that prices can also vary significantly by state, depending on local supply and dealership markups. Thus, carrying out a careful search beyond the local market can help buyers find better deals and use car shipping services like Move Cars to move their cars to their doorstep.

When planned strategically, buying used and arranging transport can be a smart way to sidestep inflated costs caused by the chicken tax.

How Importers & Consumers Are Affected

Due to the chicken tax, dealers need to adjust their prices based on sourcing costs and regional inventory differences, which can lead to big swings in prices for the same model.

This means that a buyer in Texas may pay far more for an imported van than a buyer in Oregon. Thus, it is strongly recommended to compare prices in different states and use platforms like Move Cars to find licensed car shipping companies that can deliver the best deal, even across multiple states.

While researching, buyers need to analyze local supply constraints, transportation bottlenecks, and dealership incentives. By expanding your search beyond your ZIP code, you gain access to a wide range of models and more favorable pricing.

With the right transport partner, sourcing out-of-state becomes a practical way to beat inflated local prices tied to the chicken tax.

Navigating Vehicle Shipping Under the Chicken Tax

Even with the chicken tax, you may get a better price just by looking in other states. The average shipping costs go from $800 to $1600, depending on the distance, the type of vehicle, the transport type, and the shipping season, among other factors.

Many buyers assume buying local is always the cheapest route, but that’s not necessarily true under the weight of regional markups and tariffs. Cross-state shopping gives you access to a broader selection and more competitive pricing.

With tools like Move Cars, the shipping process is simple, transparent, and tailored to your timeline. In many cases, the combined savings from the vehicle price and efficient transport can outweigh the cost of the chicken tax entirely.

How Move Cars Simplifies Shipping Your Imported Vehicle

Move Cars offers a simple, effective way to offset the hidden costs of the chicken tax. Our platform connects you with fully licensed, insured car shipping companies across the country.

You’ll enjoy:

• Instant quotes from multiple transporters
• Transparent pricing with no hidden fees
• Real-time tracking and delivery updates
• Easy booking and seamless coordination

It’s a three-step process: get quotes, book your shipment, and track your vehicle to your driveway. Unlike traditional shipping services, Move Cars is built with flexibility in mind, whether you’re buying from a dealership, a private seller, or an auction.

You can filter by price, speed, and transport type to find the option that fits your budget and timeline. With access to nationwide carriers, you’re never limited to local inventory or forced to overpay. Move Cars empowers you to make informed decisions and get your vehicle delivered without the usual hassle.

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Conclusion

Even six decades later, the chicken tax continues to shape the way Americans buy and price trucks. But it doesn’t have to shape your bottom line. By sourcing smart and shipping affordably, you can avoid inflated local prices and keep more money in your pocket.

Let Move Cars help you beat the system, compare quotes today, and move your car with confidence. Don’t let outdated trade policies limit your options or inflate your budget.

With the right strategy, you can find the vehicle you want at a price that makes sense, regardless of where it’s located. Shipping opens up access to better deals, wider inventory, and fewer compromises. At the end of the day, smart buyers don’t just shop, they ship smarter too.

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