Hertz and Avis Stocks Soar Following Announcement of 25% Auto Tariffs

The tariffs, set to begin in April, are expected to raise new car prices significantly, boosting demand for rental cars, used vehicles, and auto repairs.

President Trump announced a 25% tariff on imported vehicles and auto parts, leading to an anticipated spike in new car prices by thousands of dollars.
Hertz and Avis stocks surged over 20%, marking their best trading day since 2021, as their rental fleets gained perceived value due to the tariffs.
The rally in Hertz and Avis stocks was amplified by a short squeeze, with both companies previously heavily shorted by investors.
Auto parts retailers, including O'Reilly Automotive, AutoZone, and Advance Auto Parts, saw stock gains as analysts predicted increased demand for vehicle repairs with consumers holding onto cars longer.
The American Automotive Policy Council urged careful implementation of the tariffs to minimize the financial burden on consumers.