Ferrari Responds to U.S. Tariffs with Selective Price Increase

Ferrari has announced price increases of up to 10% on select models for the US market in response to President Trump’s new 25% tariffs on European auto imports.

The Italian luxury automaker revealed the changes will take effect April 2, making it the first European car manufacturer to respond to the trade measure formally.

It also made note that not all of the Ferrari models will see price increases, as the business intends to fully absorb tariff charges for three specific model lines.

Models like the Ferrari 296, SF90, and Roma will retain their present prices regardless of import date, protecting consumers of these specific vehicles.

Other vehicles, such as the Purosangue SUV, 12Cilindri, and limited-edition F80 hypercar, would see price increases of up to 10%.

The limited approach exemplifies Ferrari’s strategic reaction to maintaining sales momentum while retaining profit margins in its biggest market.

Ferrari produces all of its vehicles at its factory in Maranello, northern Italy, rendering the entire portfolio susceptible to the increased import taxes.

The US is Ferrari’s largest single market, accounting for over 25% of the company’s global sales.

In 2024, Ferrari supplied 3,452 cars to American consumers out of 13,752 units shipped globally, with 6% annual growth in US sales.

Despite the tariff issue, Ferrari has informed investors that it still intends to meet its 2025 financial targets.

The company noted a potential 50 basis point reduction in profitability percentage margins, but this would still leave them more profitable than in 2024.

Ferrari’s price revisions could increase vehicle costs by $25,000 to $350,000, depending on the model.

The limited edition F80, priced at more than $3.5 million, would experience the most significant monetary hike, maybe topping $350,000.

Market Impact and Industry Response

Ferrari’s stock price showed resilience following the announcement, rising 1.82% to €391.5 per share on Thursday despite broader declines in European auto stocks.

This good investor reaction indicates confidence in Ferrari’s ability to navigate the tariff situation without significantly harming its business strategy.

Ferrari’s distinctive market position and wealthy customer base provide cushioning against price sensitivity that might affect mainstream automakers.

Industry analysts note that Ferrari buyers are uniquely positioned to absorb higher prices compared to other automotive customer segments.

Bernstein analyst Stephen Reitman stated that Ferrari owners may profit from rising values for their current Ferrari collections.

Benedetto Vigna, the company’s CEO, has previously underlined the need to treat clients with respect while considering price increases.

Orders placed before April 2 will retain current pricing, regardless of model, providing a limited opportunity for potential buyers.

Ferrari’s approach contrasts with the broader European auto sector, which saw significant stock declines following Trump’s tariff announcement.

The Euro Stoxx 600 Automobiles & Parts index fell 2.4%, with Stellantis, Mercedes-Benz, Volkswagen, Porsche, and BMW all experiencing drops between 2% and 4.3%.

European Commission President Ursula von der Leyen expressed regret over the US decision while indicating the EU would seek negotiated solutions.

Ferrari plans to launch its first all-electric model in October, adding another strategic element to its evolving business landscape.

With the waiting lists already exceeding one year for most Ferrari models, demand is likely to remain strong despite the price adjustments.

The company’s exclusive sales approach, following Enzo Ferrari’s philosophy of selling “one less car than the market demands,” helps maintain desirability.