Politics
The Case of the Vanishing Van, And Its Meaning for the Trade War
- U.S. accuses Ford of disguising cargo vans to pay low tariffs
- Federal appeals court case closely watched by trade attorneys
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When is a passenger van actually a cargo van? It’s the obscure legal question at the heart of a trade case that could have profound implications for how American companies respond to President Donald Trump’s tariffs.
Trade attorneys are closely watching a case playing out in federal court involving Ford Motor Co. The automaker imported passenger vans, then removed a row of seats and sold the vehicles as cargo vans. In doing so, Ford paid a 2.5 percent import duty on the vans, because they were classified at the border as passenger vehicles, rather than the 25 percent tariff on light trucks, which include cargo vans.