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In a bold move, Ferrari, Italy’s iconic luxury sports car manufacturer, revealed plans to increase prices by up to 10% for some models in the United States. This adjustment, which will take effect on April 2, comes in response to the Trump administration’s recent decision to impose auto tariffs. For Ferrari, this is the first significant shift in its pricing strategy following the announcement of a 25% tariff on non-US-made vehicles, a move that threatens to reshape the dynamics of the European-American auto trade.
Ferrari clarified that three of its high-end models—the Ferrari 296, SF90, and Roma—would remain unaffected by the price increases. However, for the majority of its other models, customers will see price hikes ranging from $25,000 to $350,000. While these changes are set to impact Ferrari’s profit margins slightly, the company remains confident in its long-term financial goals. Despite the potential drop in profitability of 50 basis points, Ferrari still anticipates a modest increase in revenue for 2025, with a target of €7 billion. The brand’s financial performance in 2024, which saw a 21.3% jump in net profit, supports its optimistic outlook.
The announcement follows a broader market reaction to the imposition of tariffs, with shares of European car manufacturers, including Ferrari, taking a hit. However, the Italian brand’s stock managed to recover slightly, ending the day with a 1.82% gain. As Ferrari navigates these new challenges, it faces a unique set of pressures, not only from tariffs but also from shareholder movements and shifting trade dynamics. While the US remains Ferrari’s largest market, accounting for a significant portion of global sales, the broader effects of these tariff policies could continue to shape the company’s future in the coming months.
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(Source: Road & Track | Fortune)
