Madison Alworth of Fox Business explains how rental automobile companies have the possibility of benefiting financially from prices in the automotive industry imposed by the Trump administration.
The automotive prices recently announced by President Donald Trump could potentially be a boon for car rental companies.
Hertz saw the course of its shares on Thursday after a leap of more than 20%, and another rental car company, opinion, posted a two -digit increase on the same day.
The jumps that these car rental companies knew Thursday took place the day after the president that he imposed a new car import rate of 25% in early April.
President Donald Trump announces new car rates
“You may see some drivers opt to follow the track of the rental car rather than buying a new expensive vehicle,” said Madison Alworth, Fox Business correspondent. “The other reason, which is very convincing, is that companies like Hertz and Reviews, once they have finished using their cars as rental cars, they then sell them on the used cars market.”
The Hertz Corporation logo (Pavlo Gonchar / Sopa Images / Lightrocket via Getty Images / Getty Images)
The new price applies to passenger vehicles, light trucks and certain automotive parts sent to the United States for other countries.
The White House said that vehicle importers under the United States-Mexico-Canada agreement “will have the opportunity to certify their American content and the systems will be implemented in such a way that the 25% rate will only apply to the value of their non-American content.”
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The price would not apply to rental cars sold on the used cars market by rental companies like Hertz and Reviews, according to Alworth.
“So they are more precious today than before this price announcement,” she said.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Htz | Hertz Global | 4.16 | -0.07 | -1.65% |
| CAR | Budget review Group inc. | 74.66 | +0.50 | + 0.67% |
In addition to rental automobile companies, American automotive parts companies have more opportunities for repairs and parts if drivers decide to keep their existing cars for a longer period, Alworth said, citing JP Morgan analysts.
“When your car is in the store, what are you doing while waiting? You are heading for a rental company like Hertz,” she added. “It also helps these actions.”
The new car rates should come into force on April 2.
President Donald Trump speaks in the oval office of the White House in Washington, DC, March 26, 2025 (Francis Chung / Politico / Bloomberg via Getty Images / Getty Images)
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Matt Blunt, the president of the American Automotive Policy Council, said on Wednesday in a statement that it was “critical” that the prices “are implemented in a way which avoids increasing the prices of consumers and which preserves the competitiveness of the integrated North American automotive sector which was a key success of the president’s USMCA agreement.”
Trump argued that car rates will push automotive companies to build more factories and hire more workers in the United States
