WASHINGTON — Former President Donald Trump vowed to “save the American auto industry” during a speech at the Detroit Economic Club, calling the city a “mess” and revealing a plan to make car loan interest payments fully deductible. His address included critiques of U.S. trade policies and promises to renegotiate agreements with Canada and Mexico. Trump spoke for nearly two hours in Michigan, a key swing state.
Trump aims to impose tariffs of up to 20% on all imports and 60% on Chinese goods. He suggested cars from Mexico could face tariffs as high as 200% if he wins. He asserted that making car loan interest fully deductible would “revolutionize” the auto industry, making vehicles more affordable for working American families.
Uncertainty remains about whether the deduction would apply only to taxpayers who itemize or also to those using the standard deduction. The potential cost of the proposal is significant, with Americans owing approximately $1.6 trillion in car loans, according to a Federal Reserve of New York report.
R&D tax credits
Trump promised expanded research and development tax credits for U.S. carmakers, allowing them to write off 100% of the cost of heavy machinery and equipment in the first year. The Trump campaign has not clarified if these proposals are new or extensions of policies from the 2017 Tax Cuts and Jobs Act, which sunsets in 2025.
Erica York from the Tax Foundation noted on X that R&D tax credits differ from deductions for expenses or capital expenditures, suggesting Trump might be referring to restoring 100% bonus depreciation.
‘Take a look at Detroit’
Trump criticized trading partners, describing the European Union as “brutal” and sharing an anecdote about a conversation with former German Chancellor Angela Merkel regarding American cars in Berlin. He accused China of being the “biggest abuser” of trade during his presidency, highlighting Detroit’s challenges as a comparison.
Harris campaign responds to Detroit visit
Vice President Kamala Harris’ campaign organized a press call with United Auto Workers President Shawn Fain, who criticized Trump’s impact on autoworkers. Fain, who endorsed President Joe Biden and Harris, accused Trump of lying about job restoration. Biden made history by joining UAW strikers on a picket line in September 2023.
‘There will be no rematch!’
The possibility of another presidential debate resurfaced as Fox News proposed a 90-minute debate. However, Trump declined, stating on Truth Social, “THERE WILL BE NO REMATCH!” CNN offered to host live town halls for each candidate.
Ahead on the campaign trail
Harris returns to Washington, D.C., while Trump heads west for rallies in Aurora, Colorado, and Reno, Nevada. He will continue to rallies in Coachella, California, and Prescott, Arizona. Trump’s running mate, Sen. J.D. Vance, will hold a rally in Johnston, Pennsylvania. Harris plans a rally in Erie, Pennsylvania, and Minnesota Gov. Tim Walz will campaign in Wisconsin.
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