Ford, GM, Stellantis Jump After-Hours As Trump Rekindles Tax Deduction Plan For US-Made Cars Amid Rising Retail Confidence

Shares of Ford Motor Co., General Motors Co., and Stellantis NV climbed in after-hours trading on Tuesday following remarks from President Donald Trump, who reiterated his plan to make interest payments on car loans tax deductible — but only for American-made vehicles. 

The comments came during his address to a joint session of Congress, a speech that followed market turmoil over his administration's newly imposed tariffs on Canada, Mexico, and China.

Trump's announcement comes amid industry backlash to a 25% import tariff on goods from Mexico and Canada, including automobiles and auto parts, which could disrupt the supply chains of major U.S. automakers. 

A trade group representing nearly all major automakers has already warned that these tariffs could lead to sharp price increases. 

Despite these concerns, Trump's tax deduction proposal appeared to boost investor sentiment, fueling a late-day recovery in retail confidence for the so-called 'Big Three' Detroit automakers.

On Stocktwits, discussion around Ford, GM, and Stellantis took a bullish turn following Trump's speech. 

Some traders saw a buying opportunity amid the day's broader sell-off. One Stellantis watcher wrote, "Thank you all for your cheap shares today and soaking up that dividend at these low share prices."

Another expressed enthusiasm over the tax deduction plan, saying, "Let's go FORD bulls!"

"Trump will be tremendous for these companies," wrote another.

Despite the after-hours rally, some Wall Street analysts remain cautious about the broader implications of the new tariffs. 

UBS issued a note earlier in the day warning that markets had not fully priced in the potential disruption caused by the 25% levy, as many had expected a last-minute deal between the U.S., Mexico, and Canada. 

The firm identified Stellantis and Volkswagen as the automakers most vulnerable to the tariffs due to their extensive manufacturing presence in Mexico. 

With 23% of Stellantis' U.S. sales reportedly coming from Mexico-produced vehicles — more than GM's 22% and Ford's 15% — the company's supply chain faces significant exposure. 

However, UBS noted that Stellantis and Volkswagen could shift some production to underutilized U.S. plants, though such a transition would take several months.

Commerce Secretary Howard Lutnick indicated that the Trump administration may outline a path for tariff relief on North American goods as soon as Wednesday.

Ford's shares are down nearly 8% year to date, while GM has lost more than 15% and Stellantis has declined nearly 9%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.