Overview

• President Donald Trump announced a 25% tariff on imported vehicles and auto parts, expected to raise car prices by thousands of dollars.
• Rental car companies Hertz and Avis saw stock surges of over 20% as their existing fleets, unaffected by tariffs, became more valuable.
• Auto parts retailers like AutoZone, O'Reilly Automotive, and Advance Auto Parts gained as consumers are likely to hold onto vehicles longer and invest in repairs.
• Heavily shorted stocks like Hertz and Avis experienced a short squeeze, amplifying their price increases in response to the tariff announcement.
• Automakers with global supply chains, such as General Motors, faced stock declines, with industry groups urging careful tariff implementation to minimize consumer price hikes.