The Chicken Tax's Impact on the American Car Industry

The implementation of the Chicken Tax led to a significant change in the American car industry, as foreign trucks became too expensive to compete in the country. This resulted in the withdrawal of foreign truck models, allowing American companies to enjoy less competition and decreased incentive to innovate. The absence of foreign competition also led to a lack of new ideas in the American truck market. The tariff on foreign trucks led to a shift in innovation towards circumventing the tariff rather than improving the product. This led to unconventional methods by companies like Toyota, such as building trucks in parts to avoid the tax.