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The Single Tariff That Reshaped Global Auto Trade
Season 2
Episode 83
Published 1 week, 2 days ago
Description
Episode 83 of Global Trade with Fexingo digs into how one tariff provision — the U.S. 25 percent 'chicken tax' on light trucks — has warped the global auto industry for over 60 years. Lucas and Luna trace its origin to a 1960s trade spat over frozen chicken, how it created the pickup truck as a uniquely American vehicle, and why foreign automakers built U.S. factories to dodge the tax. They discuss the unintended consequences: fuel economy loopholes, the rise of the SUV, and the current 2026 trade tensions where the chicken tax is back in the news. A focused case study in how a single protectionist rule can reshape an entire industry.