Fox Business’ Madison Alworth explains how rental car companies get an opportunity to benefit financially from the auto industry tariffs installed by the Trump administration.
President Donald Trump Recently announced auto tariffs may be a boon for a potentially rented car companies.
Hz jumped his stock price post more than 20%on Thursday, and another rented car company, Avis, recorded an increase in double digits on the same day.
Jumping that those rental car companies experienced on Thursday when the President revealed that he was imposing a one New 25% auto import tariff in early April.
President Donald Trump announces new auto tariff
“You can see that some drivers can choose to go on a rented car route instead of buying a new, expensive vehicle,” Fox Business Correspondent Madison Alworth Informed “The second reason, which is very compelling, is that companies like Hz and Avis, once they use their cars as rented cars, sell them on the car market used.”
Hz Corporation logo ,
The new tariff has been sent to the US from other countries on passenger vehicles, light trucks and some auto parts.
The White House stated that under the United States-Maxico-Canada Agreement, vehicles importers will be given the opportunity to certify their American content and the system would be implemented in such a way that 25% tariff would be applied only to the value of their non-American content. “
Trump’s 25% auto import tariffs: These are the most affected manufacturer
According to Alworth, tariffs will not be applied to the cars sold on the car market used by rental companies like Hz and Avis.
“So, they are more valuable than today before this tariff declaration,” he said.
| Langer | Security | Last | Change | Change % |
|---|---|---|---|---|
| HTZ | Hz global | 4.04 | -0.19 |
-4.49% |
| car | Avis Budget Group Inc. | 73.14 | -1.02 |
-1.38% |
In addition to rented car companies, US auto parts companies stand to see more opportunities for repair and parts, if the drivers decide to keep their existing cars for a longer period, Alworth reported to be JP Morgan analysts.
“When your car is in the shop, what do you do in the meantime? You are the head of a fare -like company like Hz,” he said. “It is also helping those shares.”
New auto tariff It is expected to be effective from April 2.
President Donald Trump speaks at the Oval Office of the White House on 26 March 2025, 26 March, 2025 (Francis Chung/Politico/Bloomberg Getty Image/Getty Image)
Trump gave his promise, gave a big victory for autovers, calls union leader
Matt Blunt, president of the American Automotive Policy Council, said that in a statement on Wednesday, this “important” tariff “is implemented in a way that refrains from increasing prices for consumers and it preserves competition in the integrated North American motor vehicle sector that has been a significant success of the President’s USMCA agreement.”
Trump has argued that auto tariffs will push auto companies to manufacture more factories and appoint more workers in the US
