DETROIT, MI — Returning to the heart of the American automotive industry, President Donald Trump delivered a sweeping address to the Detroit Economic Club on Tuesday. Speaking at the MotorCity Casino Hotel, the President laid out a robust “America First” economic vision, blending aggressive trade protectionism with new tax incentives designed to revitalize Michigan’s industrial base.
The visit comes at a pivotal moment for the administration as it seeks to stabilize a shifting labor market and address lingering concerns over consumer affordability. Throughout his remarks, Trump framed the future of the American economy as a choice between industrial sovereignty and globalist decline, promising that a “Michigan Miracle” is within reach.
A Vision for the American Auto Industry
The centerpiece of the President’s speech was a bold new proposal to make interest payments on auto loans fully tax-deductible. Trump likened the plan to the existing mortgage interest deduction, arguing that it would spark a massive wave of domestic car sales.
“We are going to make it easier for the average American family to own a car again,” Trump told the crowd of business leaders and workers. “By making auto loan interest deductible, we are putting thousands of dollars back into the pockets of the people who keep this country moving.”
He further emphasized his commitment to gasoline-powered vehicles, reiterating his administration’s rollback of Biden-era EV mandates. Trump argued that forcing a transition to electric vehicles would “destroy” Detroit, instead advocating for a “technology-neutral” approach that allows the market—and the Michigan worker—to decide the future of the road.
Trade and the USMCA Review
With the United States-Mexico-Canada Agreement (USMCA) up for its formal six-year review, the President signaled a willingness to take a hard line with North American trade partners. He suggested that he would seek to renegotiate terms to further discourage “outsourcing” and ensure that more components are manufactured within U.S. borders.
“They want the deal, and they need the deal,” Trump said regarding Canada and Mexico. “But I don’t care about their needs. I care about the workers in Macomb County and the families in Dearborn. If the deal isn’t perfect for America, we’ll do something else.”
He also doubled down on his use of reciprocal tariffs, specifically targeting Chinese manufacturers attempting to circumvent U.S. trade barriers by building plants in Mexico. Trump vowed to impose tariffs as high as 200% on such vehicles to prevent what he termed the “plundering” of the American market.
Tax Reform 2.0: The 15% Manufacturing Rate
Expanding on his signature 2017 tax cuts, Trump proposed a specialized 15% corporate tax rate—down from the current 21%—but with a strict condition: it would only apply to companies that manufacture their products entirely within the United States.
“If you outsource your production, you pay the full price,” Trump declared. “But if you build here, hire here, and invest here, you will pay the lowest taxes of any major industrialized nation on Earth. We are bringing the gravy train back to Detroit.”
Inflation, the Fed, and the “Affordability” Debate
Addressing the national economy, Trump pushed back against critics who have labeled his policies as inflationary. He pointed to recent Labor Department data showing a slight dip in consumer prices as evidence that his administration is “winning the war on costs.”
However, he saved his sharpest rhetoric for Federal Reserve Chair Jerome Powell. Amidst ongoing tensions over interest rates and a Justice Department investigation into Fed spending, Trump characterized the central bank’s leadership as a hurdle to growth. He argued that lower interest rates are essential to unlocking the housing market and allowing young Americans to achieve the “American Dream.”
Tour of the Ford Rouge Electric Vehicle Center
Prior to his address, the President conducted a brief but symbolic tour of Ford’s Dearborn facility, where the F-150—the nation’s bestselling vehicle—is produced.
Walking the factory floor alongside Ford executives and UAW members, Trump paused to speak with reporters, emphasizing the importance of “liquid gold” (oil and gas) in keeping manufacturing costs low. While the plant has been a hub for Ford’s electrification efforts, Trump focused his comments on the versatility of the F-Series line and the necessity of keeping the “iconic American truck” affordable for the working class.
“I see the talent on this floor,” Trump said while standing near a line of chassis. “You can’t find this anywhere else in the world. My job is to make sure these people never have to worry about their jobs being shipped to a country that doesn’t like us.”
Sources and Links
- PBS News: Trump delivers remarks at Detroit Economic Club event
- Bridge Michigan: As Donald Trump returns, the ‘Michigan miracle’ remains far off
- Politico/E&E News: Trump travels to Ford factory in pocketbook push
- Rev Transcripts: Donald Trump Detroit Economic Club Full Transcript
- ClickOnDetroit: The Latest: Trump in Michigan to promote US manufacturing
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