Trump’s auto tariffs could be boon for rental car companies
Madison Alworth Fox Business explains how rented auto companies have the opportunity to financially benefit from the car industry tariff imposed by the Trump administration.
The recently announced car tariff from president Donald Trump is a blessing for car rental companies.
On Thursday, hertz witnessed the share price after a jump exceeding 20 %, and another rented car company, AVIS, published an increase of two numbers on the same day.
The jumps in the rented car companies that witnessed on Thursday came a day after the President revealed that it imposes a new tariff for importing cars by 25 % in early April.
President Donald Trump announces the tariff of new cars
“Some drivers may choose to walk in the rental car route instead of buying an expensive new car,” said Fox’s business correspondent Madison Aleth. “The other reason, which is very convincing, is that companies like Hurtz and Afis, as soon as they are finished using their cars as rented cars, and then selling them in the used car market.”
Hirtz logo (Pavlo Gonchaar/SOPA Images/Lightrockket via Getty Images/Getty Images)
The new tariff applies to passenger vehicles, light trucks and some automatic parts that are shipped to the United States from other countries.
The White House said that vehicle importers under the United States, Mexico and Cananga agreement “will be given the opportunity to ratify their content in the United States and their systems will be implemented so that the tariff of only 25 % applies to the value of non -American content.”
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The customs tariff will not apply to the rental cars sold in the car market used by rental companies such as HERTZ and Avis, according to Alworth.
“Therefore, it is more valuable today than it was before announcing the customs tariff,” she said.
| index | protection | last | Changing | % Change |
|---|---|---|---|---|
| Htz | Hurt Global | 4.16 | -0.07 |
-1.65 % |
| car | Avis Inc budget collection. | 74.66 | +0.50 |
+0.67 % |
In addition to renting auto companies, auto parts companies in the United States will know more opportunities for repairs and parts if drivers decide to keep their current cars for a longer period of time, citing JP Morgan analysts.
“When your car is in the store, what do you do in the meantime? You go to a rental company like Hurtz,” she added. “This also helps those stocks.”
The new car tariff is expected to become from April 2.
President Donald Trump is speaking at the White House in Washington, DC, March 26, 2025 (Francis Chung/Politico/Bloomberg via Getti Pictures/Getty Pictures)
The union leader says that Trump keeps his word, and achieves a great victory for chest business
Matt Blant, head of the US Automobile policy Council, said in a statement on Wednesday that it is important to implement “definitions” in a way that avoids raising prices for consumers, which maintains the competitiveness of the auto sector in North America that has achieved major success in the President’s Convention. ”
Trump has argued that car tariffs will push car companies to build more factories and employ more workers in the United States
2025-03-28 18:46:00
