Trump's Bold Plans: Tax Breaks and Tariffs in the Auto Industry

Donald Trump, Republican presidential candidate, proposes making car loan interest fully tax-deductible and imposing tariffs to stop Chinese automakers from selling in the U.S. His strategy targets swing state autoworkers. The vehicle loan interest proposal has been pitched amidst a competitive race with Kamala Harris.

Republican presidential candidate Donald Trump is set to announce a proposal allowing all interest on car loans to be fully tax-deductible, Reuters reports. In his upcoming speech in Detroit, he'll also outline measures to prevent Chinese automakers from penetrating the U.S. market.

Trump plans to impose fresh tariffs to restrict Chinese automakers from producing in Mexico and exporting to the United States, positioning his strategy to appeal to autoworkers in Michigan, a key battleground state.

The announcement comes as polls show a tight race between Trump and Vice President Kamala Harris ahead of the Nov. 5 election, with both candidates vying for critical support in states like Michigan.

(With inputs from agencies.)