Former President Donald Trump has proposed making the interest on car loans tax-deductible for vehicles manufactured in the United States. This move is seen as an attempt to bolster the American auto industry and attract voters.
What Happened: Trump made this announcement on Tuesday during a rally in North Carolina. He stated that if elected, he would make the interest on car loans fully tax-deductible for vehicles produced in the U.S., reported Reuters.
"I will make interest on car loans fully tax-deductible," Trump said. "I am only going to do it if they build that particular product – namely an automobile – in the United States."
With the presidential election just two weeks away, Trump's proposal is seen as a strategic move to win over voters.
Why It Matters: Trump's proposal comes amid a tight race between him and Democratic Vice President Kamala Harris. Both candidates have been making economic pledges to appeal to voters.
This is not the first time Trump has proposed economic incentives to boost the American auto industry. Earlier in September, he pledged to impose 100% tariffs on cars made in Mexico if elected. He also suggested that car assembly work in the U.S. is simple, drawing criticism from labor advocates and Democratic officials.
However, economists have warned that Trump's economic policies could lead to higher inflation and deficits compared to Harris' policies, as per a survey.
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
