
Former President Donald Trump used his appearance at the Detroit Economic Club Thursday to tout his economic agenda, promising a largely enthusiastic audience he would save what he called Michigan’s “failing auto industry.”
Trump, currently the Republican nominee for president in the November election, was making his second appearance at the DEC. His first time, he noted, was in 2016, the year he was elected.
“Maybe that was a good luck charm,” he said, drawing a laugh from the crowd.
The economic portions of his speech centered almost exclusively on the auto industry, largely centered on staving off competition from China, which he said is building “gigantic auto plants” in Mexico.
Trump said Chinese automakers plan to sell cars built in Mexico into the United States, a development he said “would destroy” Michigan. Trump said he would stop China by imposing tariffs – up to 100% if necessary – to stop China.
“I will impose whatever tariffs are required,” Trump said. “They are not going to plunder … our car Industry. Those jobs are coming back to Michigan, and it’s non-negotiable.”
Trump used his speech to announce that, if elected, he would “formally notify” Mexico and Canada of his intention to invoke the six-year renegotiation provision of the United States-Mexico-Canada Agreement, which replaced the former NAFTA agreement, to address those concerns.
“As we bring back our economy and our auto industry, I will continue my first-term efforts to protect America from the threat of Chinese automobiles,” he said. “I will stop Chinese-produced autonomous vehicles from operating on American roads — and I will close the loopholes … that are beginning to allow Chinese vehicles to creep onto American streets.”
Trump pointed out the corporate tax rate in his first term dropped to 21 percent, and he said he would pursue what he called a 15-percent “Made in America” corporate tax rate for corporations “who make their product in the United States.”
U.S.-based carmakers and manufacturers will also be rewarded with expanded Research and Development tax credits, Trump said, an inducement that will allow them to write off 100 percent of the cost of heavy machinery and other equipment in the first year, and full expensing for new manufacturing investments.
Likewise, to help small businesses afford the work vehicles they need to get the job done, the U.S. will double the amount of equipment investment they can deduct from $500,000 to $1 million.
Sticking with his car theme, Trump also announced that, as part of tax cuts he is planning, interest paid on car loans would be fully tax deductible.
“This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions of working American families,” Trump said.