The “Chicken War”: The Current Situation Regarding Tariffs on US Poultry Products

 Rebeca Leiva

The United States and the European Union have had a history regarding tariffs on chicken poultry products. This conflict, most commonly known as the "Chicken War", began in 1962 with a dispute between the U.S. and the Common Market (compromising France, West Germany, Italy, Belgium, the Netherlands and Luxembourg) when those European nations raised the tariff placed on chicken poultry products. This protectionist policy aimed to support domestic producers and, in the long run, reach a place where there is reduced dependency on U.S. poultry imports by fostering self-sufficiency among European member states.

By the beginning of 1963, U.S. poultry exports had sharply declined. Consequently, the American poultry industry was not content and was afraid of protectionist policies in Europe's agriculture sector. The U.S. claimed to have lost $46 million with the imposed European tariffs. The amount was soon revealed to be $26 million, which President Lyndon B. Johnson put into effect as countermeasures when he acquired office, in the form of tariffs towards French brandy and German trucks. After this action, each party claimed a win, whether it was a $26 million worth of retaliation from the U.S. or the fact that the U.S. had miscalculated their loss, which was a victory in the eyes of European nations. The "ceasefire" of the "Chicken War" made it a term of the past but has remained prevalent, especially with the continued presence of agricultural and food-related trade tensions, such as the chicken tax on imported light trucks.

Figure 1 illustrates the impact of the European tariffs on U.S. poultry exports. Initially, the U.S. poultry market operates at an equilibrium where the domestic quantity supplied and demanded meet at a point (P*,Q*) with an export quantity from Q1 to Q2, with revenue of h+i+j+k. The imposition of the EU tariff increases the cost of U.S. poultry in the EU market to PU.S.+Tariff, leading to a reduction in exports to the EU, becoming Q3 to Q4 with a revenue now of i+j having government revenue be d+e. Since a price increase occurs, area k is excluded from the trade, representing lost market share. Domestic producers, whose quantity supplied increases from point 0 to Q3 and have a revenue of a+b+c+g+h. This price increase makes U.S. poultry less competitive in the EU market, resulting in a deadweight loss represented by area f in the diagram, and c represents inefficiency in the market.

During Trump's first administration, he put in place a tariff on European steel and aluminium in 2018 valued at €6.4 billion, citing that there was a threat to national security from certain imports. In 2020, these tariffs expanded. The EU responded to these tariffs in June 2018 with countermeasures valued at €2.8 billion of U.S. goods, and with the 2020 expansion, further measures were taken in April of that same year. Still, these were postponed in hopes of reaching an agreement and encouraging negotiation. In April 2025, however, the European Commission reinstated these measures in response to the continuation of Trump-era trade barriers, with a measure amounting to €26 billion worth of tariffs on various agricultural products. These began to take effect on April 1, 2025 and will be fully enforced by April 13.

Nevertheless, this situation is not just a game of back and forth retaliation; it also reflects a longstanding resistance towards poultry practices in the U.S. In the United Kingdom, for example, there is a complete ban on chlorine-washed chickens. Chlorine washing is used on a variety of farms. Even when the U.S. Food and Drug Administration approved this method, the EU looked down upon it on grounds of food safety, animal welfare, and consumer standards.

Even in terms of welfare, this trade war cannot seem to stop. Donald Trump has recently expressed that if the United Kingdom wants to be relieved from tariffs, then they will buy American chlorine-washed chickens. Parliament member Nigel Farage has voiced support for a free trade deal with the U.S. to permit chlorine-washed chickens. However, the politician and founder of "Save British Farming", Liz Webster, expressed her concern, warning that UK food standards could be undermined with cheaper and less regulated imports.

The EU's renewed tariffs on U.S. poultry reflect not only a long history of trade conflict but also the complex intersection of political, economic, and ethical factors in modern trade policy-making. While in some ways aimed at protecting domestic producers and responding to perceived unfair practices, such tariffs introduce measurable inefficiencies—raising prices and reducing consumer choice, among other difficulties. The chlorine-washing dispute underlines more profound cultural and regulatory differences that make trade negotiations more complex.

These tariffs represent a classic example of protectionism: supporting domestic producers at the cost of global efficiency. Moving forward, both the U.S. and EU face a critical decision: to escalate the dispute through continued retaliatory measures or to engage in negotiations that reconcile food safety with free-market principles. The nations must make decisions that will determine the future of the "Chicken War."

References

"The Chicken War: A Battle Guide." The New York Times, January 10, 1964. https://www.nytimes.com/1964/01/10/archives/the-chicken-war-a-battle-guide.html.

Killick, James and Sara Nordin. "EU Announces Retaliatory Tariffs in Response to US Tariffs on Steel, Aluminium and Related Products." White & Case LLP, March 7, 2025. https://www.whitecase.com/insight-alert/eu-announces-retaliatory-tariffs-response-us-tariffs-steel-aluminium-and-related.

Cooke, Millie. "Trump Tells UK to Buy Chlorinated Chicken from US if It Wants Tariff Relief." The Independent, April 3, 2025. https://www.independent.co.uk/news/uk/politics/trump-tariffs-chlorinated-chicken-uk-b2726709.html.

Mason, Rowena. "Media Is 'Obsessed' with Chlorine-Washed Chicken, Says Liam Fox." The Guardian, July 24, 2017. https://www.theguardian.com/politics/2017/jul/24/us-chlorinated-chicken-not-ruled-out-by-no-10-in-pursuit-of-trade-deals?utm_source=chatgpt.com.

Wallace, Tim. "Buy US Chlorine-Washed Chicken if You Want Lower Tariffs." The Telegraph, April 3, 2025. https://www.telegraph.co.uk/business/2025/04/03/buy-us-chlorine-washed-chicken-if-you-want-lower-tariffs/.

About the Author

Rebeca Leiva is a first-year undergraduate student studying Political Science and International Affairs. She has a strong interest in economics and environmental policy and is particularly passionate about exploring the intersection between the two - specifically, how sustainable development can be shaped through international cooperation and effective public policy.

Email: leiva.r@northeastern.edu