Trump's Bold Automotive Tax Proposal to Block Chinese Imports

Donald Trump plans to propose making car loan interest fully tax-deductible and impose new tariffs to block Chinese automakers from the U.S., appealing to Michigan's autoworkers. He aims to renegotiate the North American free trade deal and potentially imposing a 200% tariff on Mexican vehicle imports.

Republican presidential candidate Donald Trump is set to announce a proposal aimed at revitalizing the American auto industry. He plans to make all interest on car loans fully tax-deductible, according to excerpts seen by Reuters before his scheduled address at the Detroit Economic Club.

This move is part of Trump's bid to block Chinese automakers from selling vehicles in the United States. Trump also aims to renegotiate North American free trade agreements, arguing that they currently favor Chinese automotive interests. He is pushing for tariffs as high as 200% on vehicles imported from Mexico.

These proposals are central to Trump's strategy to win over autoworkers in battleground states like Michigan ahead of a tight race against Vice President Kamala Harris. Both candidates are leveraging automotive policy as a key issue in their campaigns.

(With inputs from agencies.)