Ferrari, the renowned Italian luxury car manufacturer, has announced a significant price increase for its models sold in the United States, set to take effect on April 2, 2025. This decision comes in response to the recent announcement by the Trump administration regarding a 25% additional tariff on imported automobiles, which is scheduled to begin on April 3, 2025.
On March 27, 2025, Ferrari revealed that it would raise the prices of some models by up to 10%. This adjustment aims to offset the increased costs associated with the new tariffs, which the company will need to pass on to consumers. According to the company’s statement, "prices will be increased by up to 10%" for cars exported to the U.S. after the specified date.
The Trump administration's decision to impose additional tariffs on imported vehicles marks a significant development in U.S. trade policy and has raised concerns among automakers. Ferrari, which produces all its vehicles in Maranello, Italy, is particularly affected due to its substantial market presence in the U.S. In fact, the American market accounted for approximately 25% of Ferrari's total shipments last year, with around 3,452 units sold in 2024.
Despite the potential for reduced profit margins due to the tariffs, Ferrari confirmed its financial targets for 2025. The company indicated that it expects its earnings before interest and taxes (EBIT) to be at least 29%, and earnings before interest, taxes, depreciation, and amortization (EBITDA) to be at least 38.3%. However, there are concerns that these figures could decline by 50 basis points as a result of the tariffs.
Ferrari's decision to increase prices is not without precedent. Analysts suggest that the company's wealthy customer base is likely to absorb the price hikes, as they are generally in a position to do so. In fact, the price of popular models, such as the Prosangue, which starts at approximately $430,000, could see an increase of around $43,000 due to the 10% hike.
Interestingly, some models will be exempt from the price increase. Ferrari has stated that specific models, including the Ferrari 296, SF90, and Roma, will not see price adjustments after April 2. This strategy may help the company maintain its appeal among luxury buyers who are sensitive to price changes.
The broader implications of these tariffs extend beyond Ferrari. The announcement has stirred discussions about the potential for escalating trade tensions between the U.S. and other countries, particularly the European Union and Canada. President Trump has suggested that if these regions take joint action against the U.S., even harsher tariffs could be imposed, raising fears of a trade war.
As the automotive industry grapples with these changes, analysts are closely monitoring the market's response. Bernstein's Stephen Reitman noted that while new car prices may rise, the value of existing Ferrari models in consumers' garages could also increase, somewhat mitigating the shock of the price adjustments.
Ferrari's stock reacted positively to the announcement, rising by approximately 2.6% in the Milan market on the same day. Investors appeared reassured by the company’s commitment to maintaining its financial targets despite the challenges posed by the new tariffs.
In summary, Ferrari's decision to raise prices in the U.S. reflects the broader economic landscape shaped by new trade policies. As the luxury car market navigates these changes, it will be essential to watch how consumers respond to the increased costs and whether Ferrari can sustain its growth trajectory in one of its most vital markets.
