Europe’s car companies are facing challenges under Trump’s proposed tariffs, with Ferrari possibly being an exception.
On Monday, Trump announced plans to increase tariffs, including a 10% tariff on Chinese goods and a 25% tariff on goods from Mexico and Canada.
This move threatens to destabilize auto industry supply chains and raise costs. The news has already caused a drop in auto share prices, as many US and European manufacturers have factories in Mexico and rely on parts from the South American Nation.
Although Trump had not mentioned Europe, the 27-nation bloc fears it is only a matter of time before he adds the continent to his tariff plan.
Despite this, Morningstar’s equity analyst, Rella Suskin, stated that Ferrari is expected to be shielded, as its manufacturing is based in Maranello, Italy, while the company has no plans to commence manufacturing operations in the United States.
Auto analyst, Anthony Dick, added that the company would require a local supply base, which does not seem feasible.
Suskin noted that Ferrari could likely pass the tariff burden to customers, given the high-end nature of its cars, with potential buyers likely unaffected even by a 30% tariff.
Several analysts and investors also agree that Ferrari’s unique position allows it to withstand tariff challenges.
The Italian carmaker has been performing exceptionally well this year, with shares rising over 34% year-to-date, outperforming rivals like Renault and Mercedes-Benz.
