Rita Case, president and CEO of Rick Case Automotive, breaks down how automotive industry tariffs affect Americans in the “Craman Countdown.”
The new proposal allows people to amortize interest on car loans paid against taxes.
According to Sen. R-Ohio, the bill sponsor, the “U.S. Automobile Consumer Support and Relief Act (U.S. Motor Vehicle Act)” allows people to make deductions if a car is built in the United States.
“For decades, the American auto sector has been devastated by bad trade deals and bad leaders. They have shipped American manufacturing jobs overseas and flooded the market with cheap foreign cars,” Moreno said in a statement Tuesday.
President Trump announces new car rates
Former President Donald Trump will greet Senate candidate Bernie Moreno at a rally in Vandaria, Ohio on March 16, 2024. (Scott Olson) (Getty Images)
“Thanks to President Trump, we finally ensure that every car for sale in the US is made in the US and that working Americans can actually afford a car. I’m proud to lead the way in the Senate.”
Other types of borrowing, such as student loans, can deduct interest from federal taxes. If passed to the law, the law codifies what Trump proposed on the 2024 campaign trail.
“I’m fully tax-deductible on car loans,” Trump said at a North Carolina rally in October, the day the election was closed. Reuters.
Economic experts who are “not worried” about Trump’s tariff plans: This is a “much bigger” package
Workers will assemble a second-generation R1 vehicle on June 21, 2024 at the manufacturing facility of electric car manufacturer Libian in Normal, Illinois. (Joel Angel Juarez / File Photo / Reuters)
“I’m going to do that only if they build that particular product in the US, a car,” he added, the outlet reported.
With the 2017 Tax Cuts and Employment Act set to expire this year, chatter about the future of American tax policy has caused waves through Washington, particularly as Trump has proposed to eliminate tips and overtime wage taxes.
Moreno was elected to the US Senate in November and previously ran a car dealership in Ohio.
The EU is threatening “solid measures” as Trump’s tariff deadlines approach
Workers will assemble Jeep Patriot and Compass SUV at Chrysler’s Belvidale Assembly Factory in Illinois on February 2, 2012. (Michael Tercha/Chicago Tribune/Tribune News Service/Getty Images)
The automotive industry is in the spotlight this week as the president is set to announce his “liberation day” tariffs Wednesday afternoon. This is likely to have a major impact on manufacturing. The enemy has raised concerns about the impact it will have on auto parts, but those in favor of tariffs claim it is a catalyst for it to bring work back to the US.
Various automakers, like Hyundai Motor Company, have announced that they will be moving their production lines and some of their investments to the US, ramming through potential tariffs, one of the reasons for potential tariffs. According to the White House, 25% tariffs are expected on cars and parts.
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“The US is our biggest market and we have since decided to make the world’s biggest investment with this $12.6 billion,” he said. “There’s nothing better to address potential tariffs than localizing production in the US and bringing jobs,” Hyundai CEO Jose Munoz spoke last month about the “Craman Countdown” of the planned $21 billion domestic investment.
