Chicken Tax 2026: The 25% Truck Duty and What It Costs

A 25 percent duty adds $7,000 to a $28,000 pickup at the US border, and it has done so since January 7, 1964. We think the chicken tax is the line truck buyers price in last, and the one that hurts most when they do.

The Chicken Tax by the Numbers

• 25%: US general duty on light trucks under HTS 8704.31, against 2.5% for passenger cars under 8703 (USITC Harmonized Tariff Schedule, checked October 11, 2026).

• $7,000: the duty on a $28,000 pickup, before the Merchandise Processing Fee of $34.58 minimum and $670.86 maximum from October 1, 2026 (Federal Register 2026-15530).

• 35%: the total on a UK-built pickup 25 years or older entered since July 24, 2026, once the 10% Section 301 duty is added (CBP CSMS #69326983).

• $1.3 billion: the top of the penalty range Ford disclosed in June 2021 after losing its Transit Connect classification case (Reuters, June 3, 2021).

• $0: chicken tax on a US pickup going the other way. Our rates table puts New Jersey to Southampton at $1,200 in 14-16 days and California to Sydney at $2,250 in 30-33 days (WCS HubDB rates, October 19, 2026).

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.

Our read: a tariff that outlived the three goods it was signed with is not going anywhere. Plan around it, don't wait it out.

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 and 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.

Origin matters more than age. A 25-year-old pickup built in Japan or the EU pays 25 percent. The same-age truck built in the UK, a Land Rover Defender 110 pickup for example, pays 35 percent since July 24, 2026. If you are choosing between two equal trucks on two continents, that 10-point gap is real money, and we would let it decide.

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

3. The Workarounds, and the Ford Case That Closed Them

Every well-known workaround was built for carmakers moving thousands of vans, not for a collector bringing in one truck. Here is how they played out.

• Seats in, seats out. Ford imported Turkish-built Transit Connect vans as passenger vehicles at 2.5 percent, with a rear seat that came out after the vans cleared customs. CBP ruled in 2013 that the vans were cargo vans. Ford won at the Court of International Trade in 2017, lost at the Federal Circuit in 2019, and the Supreme Court declined the case on June 29, 2020. In June 2021 Ford said CBP was seeking $181 million in additional duties and weighing a penalty of up to $1.3 billion.

• Build it here. Ford and Daimler, maker of the Mercedes Sprinter, both planned US production of their cargo vans to stop paying the duty.

• Seats in the bed. The Subaru BRAT carried two rear-facing seats in its pickup bed so it could enter as a passenger vehicle.

Our take: none of this works for one truck, and it shouldn't. A collector's Hilux or Land Cruiser arrives as built and is classified as built. Budget the 25 percent and spend your energy on finding the right truck.

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 at least 125 percent.

Our view: for a collector this is academic. Nobody should plan a Chinese electric pickup import in 2026. The question most of our readers bring us is a 25-year-old diesel truck from Japan or Europe, and for that truck the number is 25 percent.

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. When We Think a Truck Is Worth 25 Percent

A. Specialty Overland Builds

The Land Cruiser 79-series pickup was never sold new in the US, and nothing Toyota sells here does the same job. For the right buyer, 25 percent is the price of the only one on the street. Of everything on this list, this is the truck we would pay it for first.

B. Kei Trucks

On a low-priced kei truck, 25 percent stays a small number in dollars. The bigger question is where you can register it, which is a state matter, not a federal one. Check your state before you bid, then read our kei truck import guide.

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: get an export-ready title from the seller.

2. Confirm the HS code: 8704, 8703 or 8706 sets the duty.

3. Gather documents: bill of sale, export certificate, EPA 3520-1, DOT HS-7 and power of attorney.

4. Book shipping: RoRo for a running truck, a container for a non-runner or several vehicles, air when the date matters most.

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.

What we check at pickup and loading, step by step, is on our collector car shipping process page.

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. Origin sets what goes on top: nothing for EU-built trucks, 10 percent Section 301 for UK-built trucks 25 years or older (35 percent total) and 25 percent Section 232 for newer UK-built trucks (50 percent total).

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.

Does the chicken tax apply to kei trucks?
Yes. A kei truck entered under HTS 8704 pays the 25 percent duty, even when it is 25 years old.

Does the chicken tax apply when a pickup leaves the US?
No. It is a US import duty. A pickup exported from the US pays only the destination country's duty and taxes.

What happened in the Ford Transit Connect case?
CBP ruled in 2013 that Transit Connect vans imported with removable rear seats were cargo vans. The Federal Circuit agreed in 2019, and the Supreme Court declined the case on June 29, 2020.

More Truck and Duty Guides

• Kei cars and trucks from Japan: how to import one
• 2001 Suzuki Carry: 25-year import and shipping guide
• The 2.5% duty on classic cars: HS code guide
• Classic car exemptions and the US-Japan tariff
• 1991 GMC Syclone buying guide
• Import a car from Japan

Get Your Truck Import Quote Now

Bought a pickup at an overseas auction, or found one at a show abroad? Get a live quote for ocean or air, door to door, and see the duty before she sails. It's your dream car. Let's bring her home.