Republican presidential nominee and former U.S. President Donald Trump addressed Michigan business leaders, outlining a plan to revive what he described as a ‘collapsing’ U.S. auto industry. Speaking at the Detroit Economic Club, Trump detailed measures aimed at supporting American automakers, including revisiting his 2020 trade agreement with Mexico and Canada, imposing tariffs, and offering significant tax incentives for car manufacturing and research in the U.S.
Trump’s proposals include making car loan interest fully tax-deductible to help consumers and automakers facing high production costs. “Your car industry is going out of business. It’s going out of business,” Trump told the 1,000 attendees at the MotorCity Casino Hotel, adding that his election in November could end what he described as a ‘nightmare’ for U.S. carmakers.
Focus on Detroit
During his two-hour speech, Trump sharply criticized Detroit, calling it more ‘developing’ than parts of China and describing it as a ‘once great city.’ He also suggested that the country could face a similar fate if Vice President Kamala Harris wins the November 5 election. “It will be like Detroit. Our whole country will end up being like Detroit if she’s your president,” Trump warned.
His remarks quickly drew a response from local leaders. U.S. Rep. Shri Thanedar, representing Detroit, defended the city, highlighting its ” booming economy, diverse culture and some of the best people in America.” Thanedar urged Trump to “Keep Detroit and our people out of your mouth,” and expressed confidence in Kamala Harris’s chances in the election.
Trade and Tariffs
Central to Trump’s plan for the auto industry are tariffs. He proposed a 20% tariff on certain imported goods and materials, aimed at encouraging onshore production. “They’re going to come here and they’re going to build here because they don’t want to pay those stiff tariffs,” Trump stated, urging manufacturers to establish factories in U.S. cities like Detroit, Dearborn, and Flint.
He also spoke of renegotiating the United States-Mexico-Canada Agreement (USMCA) to prevent Chinese automakers from exploiting loopholes by manufacturing in Mexico and selling vehicles in the U.S. Trump’s stance on tariffs has faced criticism from Vice President Harris, who likened the approach to imposing a national sales tax on consumer goods.
Electric Vehicles and Gasoline Engines
Trump also addressed the future of electric vehicles (EVs), calling the idea of mandating EV production ‘demented.’ He acknowledged that some electric models make sense but insisted that the U.S. should continue focusing on gas-powered vehicles, arguing that China already has a significant lead in EV production. “Vote for Trump, and the gasoline engine will be for a long time,” he said, framing the decision as crucial for preserving American manufacturing jobs.
Industry Leaders and Political Reactions
Businessman John Rakolta Jr, a prominent Detroit GOP donor and former U.S. ambassador to the United Arab Emirates, joined Trump on stage for a question-and-answer session following the speech. Rakolta expressed optimism about Trump’s vision for the auto industry and the potential for new auto plant construction in Michigan.
However, Trump’s plan has drawn opposition from Democratic leaders, including UAW President Shawn Fain, who has endorsed Kamala Harris. Fain accused Trump of ceding leadership in the auto industry to China and questioned his commitment to American workers. “We developed everything in this country. We were the first to send a man to the moon,” Fain remarked, adding that Trump’s stance reflects a lack of faith in U.S. innovation.
As the November election approaches, both candidates are focusing heavily on Michigan, a key battleground state with strong ties to the auto industry. Vice President Harris has been critical of Trump’s record, while her running mate, Minnesota Gov. Tim Walz, is scheduled to visit Macomb County to engage voters on manufacturing jobs.
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