Republican presidential candidate Trump proposed in a two-hour speech at the Detroit Economic Club on Thursday, October 10th, that car loan interest should be made a tax-deductible item. At the same time, he reiterated his plan to impose tariffs on imported cars based on demand, regardless of whether it is 100%, 200%, or 1,000%, to prevent Chinese cars from being sold in the US.
The speech focused on the American automobile industry. Trump stated that he plans to introduce a car loan interest tax deduction plan, treating car loan interest as a tax-deductible item similar to mortgages, to alleviate the economic hardships of ordinary American families. The tax reform bill in the US has previously included provisions for deducting interest on car and other consumer loans, until it was abolished by the US Congress in 1986. According to data from the automotive research company Edmunds, the average interest rate for purchasing a new car has risen to 7.1%, while the average interest rate for used cars is 11.2%.
Trump stated that this tax reduction plan will stimulate domestic car production on a large scale in the US and reduce the cost of purchasing cars for working families. However, this policy still needs to be passed by Congress to be implemented.
He also plans to impose new tariffs to prevent Chinese car manufacturers from producing cars in Mexico and exporting them to the US.
Trump said he plans to impose a 200% tariff on imported cars, and if necessary, he will impose any proportion of tariffs on imported cars based on demand, whether it is 100%, 200%, or even 1,000%, to block Chinese cars from entering the US.
Last year, Mexico exported over 2.5 million cars to the US. Currently, Biden imposes a 100% new tariff on all Chinese electric cars, higher than the 25% tariff Trump imposed on Chinese cars in the past.
Regarding criticism from the public about the USMCA agreement approved during Trump’s term, which allows car manufacturers to continue producing cars in Mexico and exporting them to the US market, Trump stated that he will formally notify Mexico and Canada to renegotiate the trade agreement.
He also stated that if elected, he will renegotiate the terms of the agreement.
Detroit is the largest city in the state of Michigan. According to a poll released last month by The New York Times and Siena College, the competition between Trump and Harris in this key swing state is very close, with support rates of 47% and 48% respectively. Excluding the 2.5% margin of error, it can be said that both have equal support.
The poll also found that the voters in the state are most concerned about which candidate can help the working class, with Trump generally seen as more trustworthy. Trump has also regained some support on economic issues.