Ford Motor Company (NYSE:F) shares are trading higher on Wednesday. Investors may be assessing trade policy along with President Donald Trump’s plans to make interest payments on automobile loans tax deductible for U.S.-made vehicles.

The Details: According to Reuters, the Trump administration is contemplating suspending the 25% tariff on imports from Canada and Mexico for certain products that comply with the USMCA trade agreement, which primarily affects the automotive industry.

Specifically, automakers could be granted a 30-day exemption from the tariffs. However, for the exemption to become permanent, the companies would need to demonstrate plans to invest more in U.S. automobile production.

On Tuesday, Trump met with the CEOs of Ford, General Motors, and Stellantis to discuss the potential 30-day exception. Vehicle manufacturers are open to increasing their investments in the U.S. auto sector, but they are seeking clarity on tariff policies and environmental regulations

Continued tariffs on Canadian and Mexican imports would significantly increase costs for automakers like Ford. Investors may be reacting positively to the possibility of a tariff exemption.

During his congressional address earlier this week, Trump mentioned plans to make interest payments on automobile loans tax deductible for U.S.-made vehicles, per USA Today. This could incentivize consumers to purchase U.S.-made cars, potentially boosting profits for automobile makers. Investors may also be reacting positively to this potential boost.

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F Price Action: At the time of writing, Ford stock is moving 4.51% higher at $9.53, according to data from Benzinga Pro.

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