Madison Alvort explains how car rental companies have the opportunity to financially benefit from the tariffs of the automotive industry imposed by the Trump administration.
President Donald Trump Recently announced auto tariffs can be beneficial for car rental companies.
Hertz recorded its share price on Thursday, a jump of over 20%and another car rental company, Avis, announced a two -digit increase the same day.
The jumps experienced by those car rental companies came on Thursday after the president revealed that A. New Tariff for import of 25% automatic at the beginning of April.
President Donald Trump announces new auto tariffs
“You may see some drivers decide to walk the car rental, instead of buying a new, expensive vehicle,” Fox’s business correspondent Madison Alvort reported. “The other reason, which is very attractive, is that companies like Hertz and Avis, after being used by their cars as cars for rent, then sell them in the used car market.”
The Hertz Corporation logo (Pavlo Goncar/Sopa Pictures/Lightrockets Vitty Images/Getty Images)
The new tariff refers to passenger vehicles, lightweight trucks and some car parts delivered to the United States from other countries.
The White House says car importers according to the United States-Mexico-Canada “will have the opportunity to confirm their US content and be implemented so that the 25% tariff will only apply to the value of their non-US content.”
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The tariff did not apply to renting cars sold in the used car market by rent companies like Hertz and Avis, according to Alvort.
“So, they are more valuable today than they were before this tariff announcement,” she said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HTZ | Hertz Global | 4.14 | -0.09 |
-2.01% |
| Car | Budget Group Avis AD. | 74.45 | +0.29 |
+0.39% |
In addition to car rental companies, US car parts companies stand to see a greater opportunity for repairs and parts if drivers decide to keep existing cars for a longer period of time, Alvort said, citing PE Morgan analysts.
“When your car is in the store, what do you do in the meantime? You are heading to a rental company like Hertz,” she added. “It also helps those reserves.”
The New automatic tariffs They are expected to become in force on April 2.
President Donald Trump speaks at the White House Oval Office in Washington, March 26, 2025 (Francis Jung/Politico/Bloomberg through Getty Images/Getty Images)
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Matt Blunt, president of the US Automobile Policy Council, said on Wednesday that “critical” tariffs are being implemented in a way that avoids rising consumer prices and preserving the competitiveness of the integrated North American automotive sector that is a key success of the president’s deal. ”
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