Looks like the cost of a imported LC or LX or GX could go down by 25% if current trade recommendations are approved. Wonder what that will do to resale values if a new $75k LC costs $60k?
Elimination of 25% tariff on Landcruisers
- Thread starter SWUtah
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this would be awesome news and totally suck at the same time
- Thread starter
- #3
I'm betting when this happens the Japanese companies will lower there price 5% and keep the other 20% because they know the American consumer is to stupid to know they are getting screwed. It's already a known fact that the profit on these SUV's is at the top for most manufactures.
Ps- I've owned several SUV's so I include myself in the stupid getting screwed group
Ps- I've owned several SUV's so I include myself in the stupid getting screwed group
Pretty sure the Chicken Tax does not apply to passenger focused vehicles such as the Land Cruiser, 4Runner etc.
- Thread starter
- #5
Do the research, 25% tariff on the LC and LX. New agreement will eliminate that.
Have done the research. The Land Cruiser and 4Runner etc are not commercial vehicles and are not subject to the 25% tariff - aka Chicken Tax. That tax applies to vehicles that lack passenger accommodations - like regular cab pickups and vans. MB and Ford both skirt the issue with knock down kits and disposable seats. The Subaru Brat is an interesting case study if you are interested.
http://hooniverse.com/2009/12/05/th...er-companies-manage-to-dodge-the-chicken-tax/
http://news.boldride.com/2013/05/the-chicken-tax-why-we-dont-have-more-light-pickups/29797/
http://playswithcars.com/?p=236
- Thread starter
- #7
So this is why the Tundra is built here but not the LC? Very confusing.
I would imagine the LC is built in Japan because non-US demand is so much greater than the US demand. It's probably easier (i.e., less bureaucratic and cheaper) to export to places like Australia and Africa from Japan than from the US. Plus, many of those markets require right-hand drive vehicles, which won't be built here. Of course, that's all just speculation on my part.
- Thread starter
- #9
It's a niche vehicle. Anyone know for sure about the tariff on the LC.
The landcruiser/LX are definitely not "light trucks" as defined by the chicken tax rules, so they have never been subject to the tariff. The 4 doors, rear seats and rear windows make them passenger vehicles.
http://en.wikipedia.org/wiki/Chicken_tax
Bummer, I was hoping to buy a new 2014 at 20-25% off next summer if the law gets repealed lol
http://en.wikipedia.org/wiki/Chicken_tax
Bummer, I was hoping to buy a new 2014 at 20-25% off next summer if the law gets repealed lol
Based on all the articles I could find online from 1992, a 25% import tariff does apply to both the 4Runner and Land Cruiser specifically. Based on multiple articles, it applies to both imported SUVs and minivans and seems to be still in effect. Not the same thing people call the 'chicken tax' (which was signed into law in the early 1960's) but it was an import tariff signed into law in late 1992.
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