Ferrari to Raise Prices in US Following Trump’s Tariff Announcement
Italian luxury sports car manufacturer Ferrari announced it would raise prices on some models in the United States by up to 10% in response to the Trump administration’s 25% tariffs on European car imports.
The price hikes, which will go into effect on April 2, represent the first concrete response from a European auto manufacturer to the tariffs. Ferrari stated that it would adjust its commercial policy “based on the preliminary information currently available regarding the introduction of import tariffs on EU cars into the USA.”
This announcement follows President Donald Trump’s proclamation on Wednesday to impose the 25% tariffs on auto imports, specifically targeting vehicles not made in the United States. Ferrari manufactures all its vehicles in Maranello, northern Italy.
In a statement, Ferrari specified that the Ferrari 296, SF90, and Roma models would not be affected by the price changes. For other models, “the new import conditions will be partially reflected on pricing, up to a maximum 10% increase, in coordination with our dealer network,” the company added.
The price increases are expected to raise costs between $25,000 (€23,160) and $350,000 (€324,200), depending on the specific model.
Ferrari also indicated that its financial targets for 2025 face a risk of a “50 basis points reduction on profitability percentage margins.”
Ferrari reported a net profit of €1.5 billion in 2024, a 21.3% increase from the previous year. Its operating profit margin was 28.3%, reflecting a 7% year-on-year increase. The company anticipates revenue exceeding €7 billion for 2025, a 5% increase from last year. The profit margin was forecasted at 29% this year, up from 28.3% in 2024, so the “50 basis points reduction” would still leave them slightly more profitable than last year.
Market Reaction
Ferrari’s share price saw an initial dip but recovered later in the day, closing 1.82% higher at €391.5 per share on Thursday. This contrasted with broader declines in other European auto stocks. However, the Italy-based carmaker’s stocks are still trading down 4.6% this year amid US-EU trade tensions. Its stocks declined nearly 20% after reaching an all-time high on February 18.
Ferrari’s biggest shareholder, Exor, sold 4% of its holdings, or 7 million shares, in late February, triggering a selloff in the carmaker’s stock. Trump’s tariff threats and subsequent actions have further pressured the share price.
The United States is Ferrari’s largest single market, accounting for approximately one-quarter of its total sales. In 2024, the company shipped 13,752 vehicles globally, with 3,452 units exported to the US. Sales rose 6% year-on-year in the country, the highest increase among all regions.
Shares of leading European car manufacturers experienced declines on Thursday following Trump’s auto tariff announcement, with the Euro Stoxx 600 Automobiles & Parts index falling 2.4%. Netherlands-based Stellantis saw its shares drop 4.3% to their lowest level since October 2022. German carmakers, including Mercedes-Benz, Volkswagen, Porsche, and BMW, all saw their share prices fall between 2% and 3%.
European Commission President Ursula von der Leyen issued a statement on Wednesday, expressing deep regret over the US decision to impose tariffs on European automotive exports. She also stated the European Union would “continue to seek negotiated solutions while safeguarding its economic interests.”
