What Is the Chicken Tax? The 25% Truck Import Duty | 2026

A 25 percent duty adds $7,000 to a $28,000 pickup before it ever leaves the port. That is the chicken tax, a 1964 tariff on imported light trucks that still applies in 2026, 62 years after it took effect. It started as a trade fight over frozen chicken.

1. Chicken Tax 101: A 25 Percent Tariff That Hatched From Poultry

In 1962 the European Economic Community raised its duties on US frozen chicken. President Lyndon B. Johnson answered with Proclamation 3564, signed December 4, 1963: a 25 percent duty on potato starch, dextrin, brandy and light trucks. The other three items fell away over time. The truck duty did not.

Key elements:

• HS Code 8704 generally covers pickups, cargo vans, cab-chassis, and certain SUVs.

• The tariff applies to trucks assembled outside North America unless a Free Trade Agreement (FTA) waives it.

• USMCA (Canada–Mexico), CAFTA-DR, and select bilateral FTAs exempt qualifying trucks when they meet Rules of Origin and Regional Value Content.

2. How the Chicken Tax Impacts Modern Imports

*The 25-year rule clears a classic truck of US safety and emissions rules. It does not change the duty: a 25-year-old pickup still pays 25 percent.

For background on age exemptions and reciprocal surcharges, see our classic car exemption guide.

3. Famous Work-Arounds (and Why They're Harder in 2026)

1. Cargo-to-Passenger Conversion – Mercedes once shipped Sprinter vans with rear seats, removed them in South Carolina, then sold as cargo vans. CBP cracked down, and today such reclassification must be “substantial” to qualify.

2. Kit-Build Importing – Importing disassembled bodies and drivetrains separately (HS 8708 parts) attracts 2.5 percent duty, then reassembles stateside. Customs now scrutinizes major sub-assemblies; value-added rules apply.

3. Bed-Delete Flatbeds – Importing cab-chassis trucks (HS 8706) can bypass Chicken Tax if the vehicle is incomplete, but U.S. finishing must be “commercially significant.”

4. USMCA Production – OEMs like Toyota moved Tacoma production to Mexico, fully avoiding the tariff under North-American content rules.

4. EV Trucks and the Chicken Tax

Electric pickups and vans fall under the same HS 8704 classification, with no duty relief. Add the 100 percent Section 301 duty on Chinese EVs, in force since September 27, 2024, and the total reaches 125 percent. Importers pivot to:

• Canadian tooling for Rivian-style conversions.

• Used EVs with U.S. origin to skirt both Chicken Tax and Section 301.

• Dropping battery packs to import as chassis components at 2.5 percent, then installing U.S.-sourced packs.

5. Cost Breakdown: Importing a 2023 Toyota Hilux From Japan

The duty alone is $7,000, a quarter of the truck's price. Freight depends on the port and the method, so we quote it live for each truck, by ocean or air.

6. Three Scenarios Where Importing Still Makes Sense

A. Specialty Overland Builds

Iconic Land Cruiser pickups (HZJ79) lack U.S. equivalents; buyers accept high duty for uniqueness.

B. Commercial One-Offs

Right-hand-drive utility trucks for postal routes can amortize duty via fuel savings and operational efficiency.

C. Classic Investment Trucks

A 25-year-old Land Cruiser 70 pickup, Hilux or kei truck clears the 25-year rule and still pays the 25 percent duty. On a cheap kei truck that is a small number; on a rare pickup, collectors price it in and bid anyway.

7. How We Handle a Truck Import

1. Check the classification first. HS 8704 (truck, 25 percent) against 8703 (passenger vehicle, 2.5 percent base) decides the duty. Your licensed customs broker confirms it, and a CBP binding ruling settles close calls before the truck sails.

2. Ship door to door, by ocean or air. RoRo for running trucks, a container for non-runners or several vehicles together, and air when the date matters more than the freight bill.

3. One team on the truck and the paperwork. Our own team loads every car and handles every document, through our own warehouses in California, Florida and New Jersey, covering all of the US for imports and exports.

4. Price the duty in before you bid. Bought at an overseas auction or a show abroad, the truck pays 25 percent of the price paid at entry. Add it to your maximum bid, not to the surprise column.

8. Step-by-Step Import Checklist

1. Purchase Agreement – Ensure seller provides export-ready title.

2. Finalize HS Code – 8704 vs. 8703 vs. 8706 affects duty.

3. Gather Documents – Bill of sale, export cert, EPA 3520-1, DOT HS-7, power of attorney.

4. Book Shipping – Choose RoRo (running units) or container (non-running, multiple vehicles).

5. File ISF (Importer Security Filing): due 24 hours before an ocean shipment is loaded abroad. Your customs broker files it with the shipping documents we provide.

6. Pay Duties & Fees: the 25 percent duty plus the Merchandise Processing Fee ($34.58 minimum, $670.86 maximum from October 1, 2026).

7. Customs Release & Delivery: door delivery anywhere in the US once CBP releases the truck.

Document templates live in our auction car paperwork guide.

9. Will the Chicken Tax Ever End?

There is no expiry date. Proclamation 3564, signed December 4, 1963 and in force from January 7, 1964, set the 25 percent duty on light trucks. Sixty-two years later the US tariff schedule still lists 25 percent for pickups and cargo vans under HTS 8704.21 and 8704.31.

Trade agreements have changed it country by country instead of ending it. USMCA keeps qualifying North American trucks at zero. The 2018 KORUS amendment went the other way: the 25 percent duty on Korean trucks now stays until 2041, 30 years after that agreement took effect in 2012.

So for a Hilux, a Land Cruiser 70 or a kei truck bought in 2026, the planning number is simple: 25 percent of the price paid.

10. What the Chicken Tax Means for Classic Truck Collectors

The 25-year rule clears a truck of US safety and emissions rules. It does nothing for the duty. A 25-year-old kei truck, Land Cruiser or Hilux still pays 25 percent, so put it into your maximum bid before the auction, not after. Our kei truck import guide and the 2001 Suzuki Carry guide run the numbers on two common examples.

Six decades of that duty is also why so few Japanese and European pickups were ever sold new in the US, and why the ones that arrive now draw a crowd. Classic passenger cars are a different story: most pay a 2.5 percent base duty before any country surcharge, as our HS code guide for classic cars explains.

Going the other way, the chicken tax does not apply at all. It is a US import duty, so a 1991 GMC Syclone or a Ford Lightning leaving the US pays only the destination country's duty. Start with our GMC Syclone buying guide.

11. Frequently Asked Questions

Does the 25-year exemption ever waive the Chicken Tax?
No. Age exempts safety and emissions; it does not change tariff rates.

Can I re-classify a pickup as a passenger car by adding seats?
Not anymore. CBP deems simple seat addition “tariff engineering” and applies the higher duty if the vehicle’s structural design remains a truck.

Are camper vans subject to the Chicken Tax?
If built on a cargo-van chassis and classified as 8703 (passenger) they face 2.5 percent; if 8704 (truck) they face 25 percent. Layout and seatbelts often decide.

What if I remove the bed and import as a cab-chassis?
Possible, but CBP looks for substantial transformation after import. Ask your customs broker about a binding ruling first.

Is the chicken tax still in effect in 2026?
Yes. The US tariff schedule lists 25 percent for pickups and cargo vans under HTS 8704.21 and 8704.31.

When does the chicken tax expire?
It has no expiry date. It changes only where a trade agreement removes it for one country, and the 2018 KORUS amendment keeps it on Korean trucks until 2041.

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