Outrageous! US Taxes European Trucks at 25% Rate

Back in 1964 the Ford Motor Company was worried about this:

That’s the lovable old VW bus in its pickup truck variation. Ford was worried that it would eat into their domestic pickup truck sales, and if Ford was worried then so was the United Automobile Workers union. Luckily for them, 1964 was an election year. President Lyndon Johnson wanted UAW president Walter Reuther to support his civil rights program and promise not to go on strike during the campaign, so a deal was struck. When the election was over, Johnson made good on his end of the bargain by levying a 25 percent tariff on European light trucks, putatively in retaliation for a European tariff on American chickens. The chicken tax is long gone, but the truck tariff is with us to this day.

This means that all European light pickup trucks face a 25 percent tariff when they enter the US—a tariff so high that it effectively bans all light truck imports. That’s bad news for American consumers who want to buy a VW Amorak, reputed to be a very nice small pickup. I suggest that the EU immediately threaten to levy a 25 percent tariff on all Ford and GM pickup trucks until Donald Trump agrees to level the playing field here.

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WE'LL BE BLUNT

It is astonishingly hard keeping a newsroom afloat these days, and we need to raise $253,000 in online donations quickly, by October 7.

The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

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