In a speech at the Detroit Economic Club on Thursday, former President Donald Trump vowed to make interest on car loans entirely tax deductible.
As reported by The Hill, he revealed his intention to propose a policy that would allow for full tax deductibility of car loan interest. This initiative aims to enhance domestic auto production and reduce car ownership costs for American families.
Additionally, his plan focuses on addressing competition from foreign countries by using tariffs and tax incentives to bolster the U.S. auto industry.
“This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families. This is a phenomenal thing,” Trump said.
In his address, Trump criticized Detroit’s economic situation, describing the city as “a developing area more than most places in China,” according to The Hill. He contended that his policies would drive significant growth, restore the automotive industry’s prominence, and ease the financial strain of car ownership for American families.
The Hill noted that Trump’s proposal is part of his broader tax reform agenda, which seeks to eliminate taxes on various income types, including overtime, tipped wages, and Social Security benefits. He also plans to activate the six-year renegotiation clause of the U.S.-Mexico-Canada Agreement, originally signed in 2020, to further protect American manufacturing jobs from foreign competition.
Previously, Trump threatened a 200% tariff on John Deere products if the company shifted its manufacturing to Mexico. During his speech, he also criticized China’s economic policies and outlined his strategy against Vice President Kamala Harris, advocating for tariffs and increased energy production to lower costs and support local industries.
At a campaign rally in Tucson, Arizona, in September, Trump promised to eliminate taxes on overtime pay for workers exceeding 40 hours a week if he is reelected, arguing that this would encourage workers and streamline the hiring process for businesses.
