Former President Donald Trump drew attention on Thursday with announcements that could significantly impact the automotive market.

Speaking at the Detroit Economic Club, Trump proposed a "Build It in America Plan" that introduces substantial corporate tax deductions aimed at revitalizing domestic car production, as Fox News reports.

Trump's plan to revive the auto industry includes slashing corporate taxes and threatening steep tariffs on foreign vehicles.

At the center of Trump's new proposal is a corporate tax cut to 15% specifically for companies that manufacture within the United States.

This tax relief is designed to encourage businesses to keep their operations domestic, fostering job growth and strengthening the national economy. In addition to the tax cuts, Trump proposed tax credits for research and development initiatives conducted by American automakers.

Incentives for Manufacturing and Equipment

Trump's proposals also extend benefits to manufacturers investing in heavy machinery, allowing a full write-off of such costs in the first year. Small businesses stand to gain from doubled deduction limits on equipment expenditures, which rise from $500,000 to $1 million under Section 179. These measures are expected to catalyze increased investment in American manufacturing capabilities.

Interest on loans for car purchases taken out by small businesses will become entirely tax-deductible, echoing how mortgage interest is presently treated. These changes aim to alleviate the financial burden on smaller enterprises and stimulate entrepreneurial activity.

Trump used the platform to critique past trade agreements, notably identifying NAFTA and China's entry into the WTO, as detrimental to U.S. manufacturing jobs. "Detroit was decimated," Trump stated, attributing substantial job losses in Michigan to these trade policies, which he argued depleted the state's industrial base.

Criticisms of Past Trade Deals

He further warned against Chinese automakers establishing operations in Mexico, suggesting it could pose a threat to Michigan's auto manufacturing sector.

To counter this, Trump threatened to impose tariffs as high as 1,000% on imported vehicles, a measure he claims will preserve American automotive jobs.

These proposed tariffs are part of a broader strategy Trump described to protect America's declining auto sector. "We're not going to let them come in," Trump asserted, indicating a hard line against foreign vehicles entering the U.S. market without economic repercussions.

The former president emphasized a commitment to renegotiating a trade deal across North America, aiming to manage the flow of Chinese vehicles into the U.S. The intent of these actions is to curtail foreign competitors' advantages and rejuvenate domestic industry.

Tariffs Intended to Guard U.S. Jobs

In a turn of personal news during his address, Trump shared updates regarding his family. He announced that his daughter Tiffany is expecting a child, adding a personal touch to an otherwise policy-centric speech.

He acknowledged Massad Boulos, father of Tiffany's husband Michael, who was also present at the event, highlighting familial ties and connections.

Trump's speech in Detroit outlined a multifaceted approach to reinvigorate the United States' auto industry, defined by tax incentives and trade protections.

Proposals such as reducing the corporate tax rate, offering R&D tax credits, and providing allowances for equipment purchases are at the forefront of his plan.

Trump warned that without such measures, domestic jobs might continue to suffer due to global trade dynamics.

Alongside policy announcements, he shared notable family news, interweaving personal developments with his envisioned economic reforms.