Ferrari announced that it would increase prices for certain models up to 10% in response to Trump’s 25% auto tariffs on European car imports. The company added that its 2025 profit margins face a potential 50 basis-point reduction risk.
Italy’s luxury sports car maker, Ferrari, announced in a statement on Thursday that it would raise prices by up to 10% for some models in the US. The price hikes, which will take effect from 2 April, mark the first concrete response from a European auto manufacturer to the Trump administration’s auto tariffs.
The company stated that it would update its commercial policy “based on the preliminary information currently available regarding the introduction of import tariffs on EU cars into the USA”.
On Wednesday, US President Donald Trump signed a proclamation to impose 25% tariffs on auto imports, targeting “all cars that are not made in the United States”. Ferrari manufactures all of its vehicles in Maranello, northern Italy.
In its statement, Ferrari said that three models—the Ferrari 296, SF90, and Roma—will not be affected by the policy change.
For all “the current remaining models, the new import conditions will be partially reflected on pricing, up to a maximum 10% increase, in coordination with our dealer network”, the firm added.
The price hikes are set to increase costs by between $25,000 (€23,160) and $350,000 (€324,200), depending on the model.
Additionally, the company also indicated that its financial targets for 2025 risk a “50 basis points reduction on profitability percentage margins”.
Ferrari reported a net profit of €1.5 billion in 2024, up 21.3% from the prior year. Its operating profit margin stood at 28.3%, reflecting a 7% year-on-year increase. The company expected revenue of more than €7bn for 2025, or a 5% growth from last year. The profit margin was forecasted at 29% this year, up from 28.3% in 2024. “A 50 basis points reduction” would therefore still leave it slightly more profitable than last year.
Ferrari’s share prices hit by Trump’s tariffs
Ferrari’s share price rebounded from a session low and finished 1.82% higher at €391.5 per share on Thursday, contrasting with broader declines in other European auto stocks. However, the Italy-based carmaker’s stocks are still down 4.6% this year amid US-EU trade tensions. Its stocks declined nearly 20% after reaching an all-time high on 18 February.
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 stood as Ferrari’s biggest single market, accounting for about one-quarter of its total sales. In 2024, the company shipped 13,752 vehicles worldwide, with 3,452 units exported to the US. The sales rose 6% year-on-year to the country, the highest increase among all regions.
A broad decline in share of European carmakers
Shares of major European car manufacturers fell broadly following Trump’s auto tariff announcement on Thursday, with the Euro Stoxx 600 Automobiles & Parts index declining 2.4%. The 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 fell between 2% and 3%.
European Commission President Ursula von der Leyen responded in a statement on Wednesday, expressing deep regret over the US decision to impose tariffs on European automotive exports. She also reiterated that the European Union would “continue to seek negotiated solutions while safeguarding its economic interests”.
