Overview
- 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.