Madison Alworth Fox Business' explains how car rental companies have the opportunity to financially benefit from the automotive tariffs stored by Trump administration.
President Donald Trump Recently announced that automobile tariffs could potentially benefit car rental companies.
On Thursday, Hertz recorded the price of shares after a jump over 20%and another car rental, AVIS, published on the same day a double -digit increase.
Jumps that have experienced these car rentals on Thursday came the day after the president revealed that he was depositing and New 25% tariff to import At the beginning of April.
President Donald Trump announces new automatic tariffs
“You may see that some drivers decide to go to the agency rental to buy a new, expensive vehicle,” Madison Alworth reported. “The second reason that is very convincing is that companies like Hertz and Avis, as soon as they are finished using their cars as car rentals, then sell them on the used car market.”
HERTZ CORPORATION LOGO (Pavlo Gonchar/Sopa Pictures/Lightrocets Vitty Images/Getty Images)
The new tariff applies to passenger vehicles, light trucks and some automatic parts supplied to the US from other countries.
The White House said that vehicles importers on the basis of the US-Mexiko-Kanada agreement will have the opportunity to confirm their content and systems in the US and will be implemented so that 25% of the tariff will only apply to their content outside the US. ”
Trump's 25% automotive tariffs: these are the most affected by manufacturers
The tariff would not apply to car rental companies sold on the used car market by rental companies such as Hertz and Avis, according to Alworth.
“So they're more valuable today than before this tariff,” she said.
| Ticker | Security | Last | Conversion | Change % |
|---|---|---|---|---|
| HTZ | Hertz Global | 4.16 | -0.07 |
-1.65% |
| CAR | AVIS budget Group Inc. | 74.66 | +050 |
+0.67% |
In addition to the car rental of the American Automatic Company, they are to see more opportunities for repairs and works, if drivers decide to keep existing cars for a longer period of time, Alworth reported and quoted JP Morgan analysts.
“When your car is in the store, what do you do in the meantime? Are you heading for the rental as Hertz,” she added. “It also helps these actions.”
The New automatic tariffs The effectiveness of 2 April is expected.
President Donald Trump speaks in the Oval Office of the White House in Washington, DC, 26 March 2025 (Francis Chung/Politico/Bloomberg via Getty Images/Getty Images)
Trump maintains its word, releases a great victory for Autoworks, says trade union head
Matt Blunt, President of the Council of American Automotive Policy, said that in his statement on Wednesday it was “critical” tariffs “are performed in a way that avoids raising consumer prices and maintains the competitiveness of the integrated North American automotive sector, which was the key success of the President of the USMCA.”
Trump claimed that automobile tariffs will push cars to build more factories and hire more workers in the US
