Just two weeks before the presidential election, former President Donald Trump announced a new campaign promise: the interest on loans for vehicles manufactured in the U.S. would be tax-deductible. According to reports, Trump made this announcement on Tuesday during a rally in Greensboro, North Carolina, a battleground state. “I don’t want it to benefit other countries. I want it to benefit us,” Trump said as he introduced his proposal.
He added, “The deductibility of interest is great, but only if the car is manufactured in the United States,” questioning, “Why would we give them taxes if they manufacture the car in China or Japan or lots of other places that stole our business over the years?“
Trump referenced Detroit, Michigan, saying, “I think this will be a great help to Detroit.”
Foreign media reported that Trump’s proposal would allow vehicle loan interest to be deducted, similar to the current mortgage interest deduction on federal tax returns.
Trump has previously pledged to increase domestic auto production and impose 100-200% tariffs on Chinese vehicles produced in Mexico, targeting the votes of auto industry workers.
