Trump Declares Detroit a ‘Mess’ While Vowing Full Deduction on Car Loan Interest

WASHINGTON — In a speech delivered to the Detroit Economic Club on Thursday, former President Donald Trump committed to revitalizing the American auto industry while criticizing Detroit as a “mess.” The event marked a key moment in Trump’s campaign, as he introduced a new proposal aimed at making car loan interest payments fully deductible.

Trump’s remarks spanned nearly two hours, during which he disparaged U.S. trade practices, labeling them “dumb.” He also promised voters significant trade renegotiations with Canada and Mexico if he is elected again. Currently, Trump is advocating for tariffs of up to 20% on imported goods, and he specified a potential 200% tariff on cars imported from Mexico.

“This will revolutionize your industry,” Trump asserted about the car loan proposal. He claimed it would stimulate domestic production and make car ownership more affordable for countless working families in America.

Despite the enthusiasm, questions linger about the specifics of the deduction, including its applicability to taxpayers who take the standard deduction versus those who itemize. The financial implications are substantial, as Americans currently owe around $1.6 trillion in car loans, according to the Federal Reserve of New York.

Additionally, Trump pledged to enhance research and development (R&D) tax credits for American automakers. The former president stated that companies would be able to write off 100% of heavy machinery costs in the first year and receive full expensing for significant manufacturing investments. The specifics of these proposals remain murky, with the Trump campaign not clarifying whether they represent new policy or extensions of existing measures from the 2017 Tax Cuts and Jobs Act.

Erica York, a senior economist and research director for the Tax Foundation, commented on the potential revival of immediate R&D expenses and full bonus depreciation, suggesting that these concepts are distinct from other tax deductions.

In his address, Trump did not shy away from criticizing international competitors, particularly the European Union, which he characterized as “brutal.” He recounted a conversation with former German Chancellor Angela Merkel, implying that the U.S. was being taken advantage of in trade relations.

Amidst Trump’s visit to Michigan, Vice President Kamala Harris’s campaign organized a press call where United Auto Workers President Shawn Fain condemned Trump’s record with autoworkers, labeling him as the “job-killer-in-chief.” Fain emphasized that Trump has not delivered meaningful support for this key constituency, while Biden recently gained significant attention by joining striking UAW members on the picket line.

The campaign trail remains busy, with Trump scheduled for rallies in Colorado and Nevada following his Detroit visit. Meanwhile, Harris will continue her campaign efforts in Arizona, hoping to reach undecided voters.

As the election approaches, discussions surrounding potential presidential debates have emerged. Trump declared on his platform Truth Social, “THERE WILL BE NO REMATCH!” in response to an offer from Fox News to host a debate.

The political landscape is evolving as both sides ramp up their campaigns, each working to secure the crucial support needed for the upcoming election.