President Donald Trump announced Friday a new policy instituting auto loan interest deductions for American-made cars.
“If you buy a car in the United States that’s made in the United States, if it’s manufactured here, when you borrow money, if you borrow money, you have interest payments,” Trump said in the Oval Office.
“We’re gonna let you deduct the interest payments for income tax reasons.”
President Trump first proposed the deduction in October, and it has been compared to the existing interest deduction on mortgages, which allows homeowners to write off a portion of their mortgage interest payments, according to a report.
The report noted that in 2024, Americans would pay an average of $1,332 a year in interest payments after purchasing a new vehicle, and more than 100 million Americans had auto loans when 2025 began.
