Trump Announces Radical New Plan for Car Loans: If You Bought American This Is a Must-Read
President Donald Trump vowed during his address to a joint session of Congress on Tuesday evening that he would make interest payments on loans for cars made in the United States tax deductible.
The move is part of several economic policies meant to promote American manufacturing and to decrease the tax burden on households.
“I also want to make interest payments on car loans tax deductible, but only if the car is made in America,” Trump told lawmakers and other senior government officials assembled for the speech.
President Trump: “I also want to make interest payments on car loans tax deductible, but only if the car is made in America.”
GENIUS!!!! pic.twitter.com/riDLQ02q2p
— George (@BehizyTweets) March 5, 2025
Trump previously floated similar plans on the campaign trail.
During one October event in North Carolina, for instance, Trump said that he would “make interest on car loans fully tax deductible,” but only “if they build that particular product, namely an automobile, in the United States,” according to Reuters.
The outlet noted that the plan would treat interest paid on car loans much like the deduction for interest currently in place for home mortgages.
During his Tuesday speech, Trump reiterated his commitment to policies he proposed on the campaign trail, such as ending taxes on tips, overtime, and Social Security payments.
TRUMP: I’m calling for no tax on tips, no tax on overtime, and no tax on Social Security benefits for seniors. And tax-deductible interest payments on loans for American-made cars.
— Sean Davis (@seanmdav) March 5, 2025
Social media users reacted positively to the plan as announced on Tuesday evening.
“Love this! Boosting American jobs & cars — genius move. Time to drive local, save on taxes, and keep our economy rolling,” one user said.
“Another reason to buy American made vehicles other than the tariffs!” a second user remarked.
“Great way to promote a made in America agenda,” a third commenter added.
Trump has also been critical of the automotive policies pursued by the previous administration.
During the campaign, he promised to “cancel Kamala’s insane electric vehicle mandate immediately.”
President Trump will CANCEL Kamala’s insane electric vehicle mandate and make interest on car loans FULLY tax deductible.
“Affording a car is essential to restoring the American dream.” pic.twitter.com/IHq1YivcEf
— Trump War Room (@TrumpWarRoom) October 16, 2024
“The problem is they don’t go far, they’re very expensive, they’re made in China, and they have some other things,” Trump continued.
“Now with that being said, I think they’re phenomenal. … I say that because of Elon,” he said in reference to Elon Musk, who now leads the Department of Government Efficiency.
Trump said, “Affording a car is essential to restoring the American dream.”
Truth and Accuracy
We are committed to truth and accuracy in all of our journalism. Read our editorial standards.
Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.
