The MoneyHatch Newsletter, Edition 8

March 4th, 2025

Editor’s Note

Did you know there’s still a 25% tariff on chickens from France and Germany? It dates back to a 1964 trade dispute known as the U.S. Chicken War.

During the Cold War era, American farmers were producing cheap chickens, flooding European markets — especially France and West Germany. To protect local farmers, European governments imposed high import taxes on U.S. poultry. In response, the U.S. retaliated with tariffs on European chickens, light trucks, potato starch, and brandy.

The effects were immediate. In Europe, poultry prices rose as consumers lost access to cheap American chicken. Local farmers benefited at first, but with less competition, the industry became less efficient, and European countries had to find alternative suppliers.

In the U.S., the tariff on foreign pickup trucks made imported models more expensive, forcing companies like Toyota and Nissan to shift production to America. This gave Ford and General Motors a lasting competitive edge, while U.S. poultry farmers lost a major European market and trade relations remained strained.

Even though the dispute ended long ago, the tariffs never disappeared. This is a classic example of how once a tax or tariff is in place, it rarely goes away, even when it no longer serves its original purpose. It also shows how tariffs can both protect and distort industries in unexpected ways.

With the U.S. now imposing new tariffs on Canada, Mexico, and China, which we’ll cover later, it’s worth paying attention. History shows that once tariffs take hold, they tend to stick around.

Warm regards,

The MoneyHatch Team

Bahamian Financial Updates

Economy News

1. $10 Million on Government Travel in Six Months