Ferrari (RACE) is usually quick off the starting grid. So it comes as no surprise that it’s moved swiftly to hike prices on some of its models sold in the United States in response to President Donald Trump’s plan to impose 25% tariffs on all imported vehicles, with the Maranello-based company adding that the overall financial impact this year would likely be small.
In an update to its commercial policy published on Thursday the Italian luxury carmaker said it will increase prices by up to 10% as it seeks to offset some of the additional costs from tariffs as the industry warned of immediate cost increases that will need to be passed on to consumers.
Ferrari said the move was based on the preliminary information currently available regarding the introduction of import tariffs on EU cars into the USA. “New import conditions will be partially reflected on pricing, up to a maximum 10 per cent increase,” Ferrari said.
It comes amid warnings of immediate price hikes by vehicle suppliers to offset tariffs. Analysts at Bernstein say the 25% tariffs will add $6,250 in additional cost to every vehicle sold in the U.S.
In its update, Ferrari said pricing will not go up on any orders imported before April 2nd, while the price of three models – 296, SF90 and Roma – would not be affected by the increase. But popular models like the Purosangue SUV, the 12Cilindri and the F80 will see prices spike – an extra $43,000 on the $430,000 Purosangue for example.
Based on the current situation, Ferrari confirmed its financial targets for 2025 but said there was a potential risk of 50 basis points reduction on its margins.
Ferrari makes all of its cars at its Maranello plant in Italy, meaning it’s especially exposed to U.S. tariffs.
Earlier this month Ferrari CEO Benedetto Vigna told CNBC at CONVERGE LIVE in Singapore that the company was “ready with some countermeasures” to tariffs, adding that the carmaker was in a “scenario planning phase” and is waiting for the official announcement on the tariff rate.
Analysts have stressed that Ferrari is more able than most carmakers to pass on costs to consumers. Shares of Ferrari listed in Milan (IT:RACE) rallied 3% on Friday.
Is RACE a Good Stock to Buy?
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