By Denny Jacob
Hertz Global Holding and Avis Budget Group shares surged after President Trump announced tariffs that would bring fresh complications to auto manufacturers.
Shares of Hertz surged 19% to $4.09. Shares of Avis jumped 19% to $73.43, on pace for its largest percentage increase since March 2022.
Trump said he would impose 25% tariffs on all vehicles imported to the U.S., slated to begin about a week from now. Wedbush analysts in a research note said Trump's proposal 25% tariffs on cars made outside of the U.S. would ultimately push the average price up by $5,000 to $10,000.
The car rental companies stand to benefit from the coming tariffs by way of increasing value on their existing inventory. Higher car prices also would present an opening for Hertz and Avis for consumers looking for alternative transportation options.
Deutsche Bank analyst Chris Woronka earlier in the month said the used car market is likely to experience price increases if tariffs went into effect, opening the door for Avis to make gains on vehicle resales. It also can navigate soft patches in demand by quickly adjusting fleet levels, he added.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
March 27, 2025 13:17 ET (17:17 GMT)
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