Market Analysis

Republican presidential candidate Donald Trump announced on Tuesday his plan to make interest on car loans fully tax-deductible, but only for vehicles manufactured in the United States. This proposal is the latest in a series of economic incentives designed to attract voters, with just two weeks remaining before the November 5 election.

Key Quotes
"I will make interest on car loans fully tax-deductible," Trump said during a rally in North Carolina. "However, this will apply only if the vehicle is built in the United States," he added.

Why It’s Important
Trump is locked in a closely contested race with Democratic Vice President Kamala Harris, and both candidates have been making economic promises to sway voters. Harris has proposed a middle-class tax cut, while Trump has focused on cutting taxes on overtime pay. Both candidates have also supported eliminating taxes on tips.

Any changes to the tax code would require approval from Congress.

Context
Trump’s car loan plan aims to make interest on vehicle loans deductible, similar to the current mortgage interest deduction, and is part of his broader tax cut proposals. In the final stretch of his campaign, Trump has suggested using tax incentives to curb Chinese automakers from selling vehicles in the U.S., as he seeks to garner support from autoworkers.

Paraphrasing text from "Reuters" all rights reserved by the original author.