Ferrari’s Sales And Profitability Will Not Be Greatly Impacted By US Tariffs

Analysts say Italian luxury sports car maker Ferrari will not suffer a major hit to sales and profits in the United States, regardless of what new tariff regime President Donald Trump ultimately imposes.

Britain’s Aston Martin, which is facing financial difficulties and makes a third of its sales in the US, looks somewhat more vulnerable. The US accounts for about 25 percent of Ferrari’s sales.

The recent changes to the U.S. tariff system, set at 25 percent, have been referred to by European commentators as the “Smoot-Hawley Act version 2.1.” The original Smoot-Hawley tariffs of 1930 ignited a global trade war and hampered trade, contributing to the Great Depression.

EU denies tariffs are unfair

President Trump aims to create a fairer trading environment by addressing what he sees as the unfair treatment of the U.S. by some trading partners, particularly the European Union. His initial proposal includes a 25 percent tariff on cars to correct the current tariff imbalance—2.5 percent in the U.S. versus 10 percent in the EU. He also seeks to eliminate non-tariff barriers that disadvantage American products, indicating lengthy negotiations ahead. The EU argues that its tariffs are not unfair.

For Ferrari, the impact of the 25% tariff (up from the current 2.5%) will be limited. HSBC Global Research pointed out that the tariffs are calculated based on the import value, not the final selling price.

“Moderate price increases largely cover the profit reduction.”

Given that the price of the Ferrari Purosangue SUV starts at around $408,000, these price increases won’t have much of an impact.

Investment bank UBS said increased US tariffs would impact Ferrari’s global profits, but unfavorable exchange rates would also play a role, and lowered its EBITDA (earnings before interest, taxes, depreciation and amortization) estimate for 2025 by 0.8 percentage points to 37.7%.

Ferrari fills up its order book

Investment research firm Bernstein maintained its “Outperform” rating on Ferrari, with a target price of $575.

Ferrari increased its profit to 2.56 billion euros ($2.67 billion) last year. That’s a slight increase from 2023’s EBITDA of 2.28 billion euros ($2.37 billion).

Ferrari announced that its order book is full until 2026. Thus, all 799 F80 supercars worth 3.6 million euros ($3.75 million) have already been sold.

Aston Martin was forced to raise additional funds last month – $162 million from its chairman, Lawrence Stroll, and by selling his stake in his Formula 1 team. This was done to cover growing losses and cushion the impact of US tariffs, according to Reuters. Stroll has invested around 600 million pounds ($777 million) in Aston Martin since he took over the company in 2020.

Stroll has increased his stake to 33% and is considering increasing it to 35%. This has fueled speculation that he may be planning a full takeover of the company.

Aston Martin reported an adjusted pre-tax loss of 255.5 million pounds ($330 million) for 2024, compared with a loss of 171.8 million pounds ($222 million) the previous year. The company has faced reduced demand in key markets such as China.

Aston Martin has implemented cost-cutting measures, including cutting its global workforce by 5%, intending to save around £25 million, according to Reuters

• Also See: Ferrari Hikes Pricing Of Select Models To Reduce Impact Of US Tariffs