Deduct auto loan interest?

President Trump: "We are trying to get approval, if we can.

If you borrow money to buy a car, you are allowed to deduct the interest payments for income tax purposes, but only if the car is made in the United States. So if the car is made in the United States, you get a loan, you can deduct the interest. It’s a big savings.

A lot of people in that part of the world, when it comes to buying cars, many of them don’t think in terms of deductions. The people who think in terms of deductions are very wealthy people.

But people will start to understand what a good deduction is all about.

So when you get a loan to buy a car—and I think it’s going to pay for itself, I don’t think there’s any cost. I think that’s going to—you’re going to have so many cars built. But you will only get that interest deduction if the car is made in the United States of America."

Since his return to power in January 2025, President Donald Trump's administration has implemented various economic policies aimed at strengthening the U.S. economy.

Tax Reduction: The administration has proposed lowering the corporate tax rate from 21% to 15%, seeking to encourage investment and the repatriation of companies to U.S. territory. However, this tax benefit would only apply to companies that manufacture their products within the United States.

Protectionist Trade Policies: In February 2025, President Trump signed executive orders imposing a 25% tariff on all goods imported from Mexico and Canada and a 10% tariff on those from China. These measures aim to reduce the trade deficit and protect domestic industry.

Fiscal Reforms and Public Spending Cuts: The administration has proposed significant cuts to social programs to finance tax reductions.

These policies reflect a focus on protectionism and reducing the size of the federal government, with the goal of fostering economic growth and strengthening the United States' position in international trade.