Donald Trump promised tax breaks for purchasing cars at a rally in Greensboro, North Carolina, on October 22, Bloomberg reported, emphasizing that the breaks would only apply to American-made vehicles.
"I don't want the car tax break to benefit other countries. I want it to benefit the United States only. It's great that the interest is deductible, but the premise is that the car must be made in the United States," Trump stated.
He questioned, "Why should we give tax breaks to automakers if they make cars in China, Japan, or many other places that have stolen our business over the years? I think this will be a significant boon to Detroit," referring to the center of American auto manufacturing in Michigan.
Trump has not specified whether foreign automakers like Volkswagen AG, Toyota Motor Corp., and Hyundai Motor Co.-which produce millions of cars in the U.S.-will qualify for these tax breaks.
He also reminisced about the "glory days" of the U.S. auto industry, mentioning that his father, born in 1905, defined luxury as purchasing a new Cadillac every two years.
In addition to tax breaks for car buyers, Trump has vowed to impose high tariffs on vehicles and other products made in Mexico, China, and elsewhere. Economists warn that such tariffs could lead to increased household spending, potentially hampering economic growth.
In recent weeks, to address voters' concerns about the loss of domestic manufacturing jobs, Trump has increasingly focused on U.S. automakers and repeatedly promised to restore industries affected by the shift of factories overseas. He also mentioned plans to reduce federal tax loan interest for car buyers, which he believes will significantly boost U.S. auto sales.