Luxury carmaker Ferrari has announced price increases of up to 10% on certain models in response to the U.S. government’s 25% tariff on European auto imports. The Italian automaker, which manufactures all its vehicles in Maranello, confirmed the decision on Thursday, making it the first European car brand to react with pricing adjustments following President Donald Trump’s latest trade measures.
The price hikes, set to take effect on April 2, will impact a range of Ferrari models. The company clarified that the Ferrari 296, SF90, and Roma would remain unaffected, but all other models will see partial price increases of up to 10% in coordination with its U.S. dealer network. The new pricing structure will add between $25,000 (€23,160) and $350,000 (€324,200) to the cost of affected models, Ferrari stated.
The tariff move follows Trump’s proclamation on Wednesday, which targeted “all cars that are not made in the United States.” Ferrari, whose largest single market is the U.S., faces significant challenges under the new policy. Last year, the company exported 3,452 units to the U.S., accounting for roughly a quarter of its total global sales of 13,752 vehicles. U.S. sales also saw the highest growth rate among all regions, rising by 6% year-on-year.
Profitability at Risk
Beyond price increases, Ferrari also warned of financial pressures resulting from the tariffs. The company stated that its profit margin for 2025 faces a potential reduction of 50 basis points. Despite this, Ferrari remains in a strong financial position. In 2024, it posted a net profit of €1.5 billion, reflecting a 21.3% increase from the previous year. Its operating profit margin stood at 28.3%, a 7% rise year-over-year. The company had projected revenue of over €7 billion for 2025, with a target profit margin of 29%, meaning the forecasted decline would still keep it ahead of last year’s profitability.
Market Reaction and Stock Performance
Ferrari’s stock price rebounded on Thursday, closing 1.82% higher at €391.5 per share, despite initial losses. However, the automaker’s shares remain down 4.6% year-to-date, amid ongoing trade tensions between the U.S. and the European Union. Ferrari stock had also experienced a sharp decline of nearly 20% after reaching an all-time high on February 18, further impacted by its largest shareholder, Exor, selling a 4% stake in late February.
The broader European auto sector did not fare as well. The Euro Stoxx 600 Automobiles & Parts index fell by 2.4% following Trump’s announcement, with leading manufacturers experiencing sharp declines. Stellantis, the parent company of brands such as Fiat, Peugeot, and Chrysler, saw its shares slide 4.3%, hitting their lowest point since October 2022. German automakers—including Mercedes-Benz, Volkswagen, Porsche, and BMW—recorded losses between 2% and 3%.
EU’s Response
European Commission President Ursula von der Leyen condemned the tariffs, stating that the EU “deeply regrets” the U.S. decision and will continue to seek diplomatic solutions while safeguarding its economic interests.
As the trade dispute escalates, industry analysts warn that further retaliatory measures could be on the horizon, potentially reshaping the global automotive market in the coming months.