What’s the Big Deal About Trade? TRADE IS A BIG TOPIC ON THE CAMPAIGN TRAIL, AND DEALERS ARE TAKING NOTE T BY AIADA STAFF o date, the 2016 presidential race has had its fair share of unexpected twists and turns. With much of the electorate polarized over a wide array of issues, one topic has drawn what some may con- sider surprising bipartisan fire: trade. It’s a pivotal issue for AIADA and its dealers. Almost 50 years ago, AIADA was founded by a group of Volkswagen dealers in response to a trade war between the U.S. and Germany that resulted in a 25-percent tariff imposed on imported trucks. Widely known as the “Chicken Tax,” thanks to the fact that the U.S. used the tariff to counter Germany’s own tariff on U.S. chicken, the tariff is still imposed to this day and impacts every international automaker seeking to sell imported trucks on their American dealer lots. “I think it comes as a surprise to some that such a steep tariff is still tacked on to certain vehicles entering the U.S. today,” says Rachel Robinson, AIADA’s vice president of Government Relations. “It’s proof that AIADA’s dealers need to take note of the trade issue because the costs of something like the Chicken Tax are passed on to dealers and their customers.” Trade Misconceptions Abound The 2016 presidential race is certainly not the first time free trade has come under fire. Many will remember the bat- tles surrounding passage of the North American Free Trade Agreement (NAFTA) in 1993, while younger dealers are likely familiar with the fact that lopsided trade deficits are often pointed to as the root cause of American job loss. But, what’s different about 2016? continued on page 20 SUMMER 2016 | AutoDealer 19