Trump's auto tariffs likely to negatively impact Ferrari with potential decrease in sales and stock price

From Yahoo Finance: 2025-03-27 08:23:00

Luxury car buyers, including Ferrari enthusiasts, may face setbacks due to Trump’s new auto tariffs. Analyst Ryan Brinkman warns of earnings implications for Ferrari from the latest tariffs affecting Italy and other countries. Ferrari could see delayed purchases and reduced demand, leading to a 7% stock price decrease and potential impact on 2025 sales.

Trump announced 25% tariffs on all foreign-made vehicles and certain auto parts, effective April 2, to boost economic growth. Despite Trump’s optimism, investors worry about increased production costs, higher prices, and reduced consumer demand. Automakers like Ferrari and US giants GM, Ford, and Stellantis saw stock declines in premarket trading.

Wall Street reacts negatively to Trump’s auto tariffs, causing Ferrari stock to drop 2%. General Motors and Ford shares fell 7% and 3%, respectively, while Stellantis was down 2%. Japanese automakers Toyota and Honda also experienced a 2% slide in US-listed stock. Analyst Brinkman adjusts estimates and price targets for Ford and GM due to potential earnings risks from impending auto tariffs.

Read more: Trump auto tariffs may be ‘worse’ for Ferrari: JPMorgan