Ferrari drivers in the U.S. face steep price increases for their new models after the luxury carmaker warned fresh import tariffs implemented by Donald Trump could lead to five-figure price increases.
Trump this week announced sweeping 25% import tariffs on all cars and some car parts, including engines, after arguing that the current rate of car imports threatened national security.
The move aims to encourage U.S. drivers to buy American while forcing European mass-market manufacturers to move more of their production to the U.S. Trump also expects to improve the U.S.’s tax purse through import tariffs.
For luxury carmakers, however, almost all of which are based in Europe, there is little alternative but to hit their wealthy customers in the U.S. with price hikes, with the chances of carmakers like Roll-Royce, Bentley, or Lamborghini moving production to the U.S. under any circumstance incredibly remote.
After Trump announced the import tariffs, luxury Italian carmaker Ferrari was quick to warn its U.S. customers that some models would be subject to price increases of as much as 10%.
All cars imported before April 2, Trump’s self-proclaimed “liberation day,” will be exempt from tariffs. Meanwhile, three of Ferrari’s models, the 296, SF90, and Roma, will not face higher prices regardless of import date.
That leaves other Ferrari models, including the 12Cilindri and the Pursangue, exposed to hikes that would add tens of thousands of dollars to their price tags.
The 12Cilindri starts at around $459,000, with a $505,000 Spider also available. Under Ferrari’s most punishing price forecast, that could add between $45,000 and $50,000 to the price a customer pays for a car.
The carmaker said it would coordinate with its dealer network to implement price rises across some of its fleet. Ferrari’s partner dealers face absorbing the new tariff upon import, before working with Ferrari to pass on some of those costs to its customers.
Ferrari reaffirmed its previous 2025 financial targets but cautioned of a 50 basis point risk to its profitability margins. Shares in the carmaker were up more than 3% on Friday morning in the wake of the warning, offsetting initial losses after Trump’s announcement.
The group’s fast response shouldn’t come as a surprise. Earlier in March, Ferrari CEO Benedetto Vigna said the carmaker was scenario planning and prepared with “countermeasures” if tariffs were to be implemented.
All Ferrari cars are produced in its iconic Maranello factory in northern Italy, with around 13,700 rolling off the lot last year. Speaking in December, Vigna confirmed Ferrari would never make its cars outside Italy.
“We will sell cars in U.S., but we will make cars in Maranello,” said Vigna.
Other luxury carmakers are following suit, breaking from the rhetoric of mass-market producers who will need to find workarounds to stay competitive in the U.S.
Last week, Bentley CEO Frank-Steffen Walliser warned his carmaker would also likely be forced to pass price rises onto his customers.
This story was originally featured on Fortune.com
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