Car import Tariff fixed at 15%

Eager to hear what approach Ferrari takes. If entire 15% becomes an add-on to MSRP, will seriously consider cancelling 12C and Purosangue orders (and eat the loss on non refundable deposits)…on top of the 10% California sales tax this gets meaningful amount going to government on sizable MSRP cars.
Excellent deal for the US administration and surprised the EU couldn’t even negotiate an exemption or special rate for their low volume items, such as makers of some relatively low volume cars and watches.

 

My dealer estimates 10% MSRP increase on new orders.

 

Will be interesting to see what Ferrari will do with cars on the water to the US and those that are in New Jersey which I have heard is about 500 to 600 cars.

 

That's a lot of expen$ive cars in one place! Hope they are all safe in warehouses given the recent weather experience in NJ this summer and the heightened risk of hail and flood damage for new cars in the wrong place at the wrong time.

 

There already was an additional charged based off the 25% tariff for the 12C and Puro, so given this is less than that I'd hope that they tariff charges are lowered on those models to reflect.

 

Exactly! Ferrari already instituted an 8.5% price increase on the 12C as a result of the 25% tariff. If they try to raise the price above the 8.5% given an overall 10% tariff reduction, then I will simply cancel my order. Ferrari already benefits from almost a $150,000 average profit margin on their cars (versus Porsche at roughly $25,000). Simply finding new ways to stick it to their customers is not cool. Ferrari cars are "nice to have", versus "need to have" items.

 

As has already been mentioned, 15% would apply on the price on arrival (i.e. before any cost or margin in the US, including dealer profit - so the 15% tariff should not increase the MSRP by 15%, but a lot less even if Ferrari pass it completely to the customers).
The EU is completely divided (each country looking only to its own concerns) so it's in a very bad position to negotiate consistently.

 

Not really. Even if produced here they still have a 50% tariff steel and a 25% tariff car parts not produced here plus whatever else (aluminum etc). It’s cheaper for manufacturers to build elsewhere due to the tariffs on materials alone.

 

The thing is - even if a company is "passing a tariff completely to the customer", they are actually losing money on it.

It's an expense they are spending real money on, so normally a company would expect a return on that money. If Ferrari pays $1,200 to a supplier for a wheel, they don't sell that wheel to the customer for $1,200, they mark it up.

So, in any normal business model a 15% tariff should increase the price of goods by more than 15%.

 

Nope. That's not how it works at all.

 

Well... Ferrari is a complex luxury product.

They need to have scarcity to justify their insane prices lately.

So they will have to choose a balance of price vs demand.

If like many on here say they will cancel their orders... Ferrari can't have the cars arrive on dealer lots and sit. It will ruin the brands reputation and it will cost the brand dearly in brand value which will affect the price and sales of the car.

They may have to eat some of it in order to maintain the status quo.

 

Agree. However, if they do build them here I hope there's a 1000% tariff on sticky buttons, forcing them to make quality ones here.

 

That's the funniest **** I've read in a while

 

And it’s still an uphill climb due to tariffs.

https://www.foxbusiness.com/markets/gm-profit-shrinks-despite-stronger-sales.amp

 

All tariffs are on the declared value, not the MSRP or what something is listed for. We have no idea what Ferrari declares the value at and if the US accepts that.

 

Agreed. The cars are not an inelastic good.

 

I don’t know the details but someone posted this on social media, it is a bit crazy
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That window sticker is consistent with the 8.5% mark-up the dealer mentioned when I built my 12C. Price to play so will do it as nearly all 12Cs will get imported post this tariff so it’s not as if I am particularly disadvantaged vs earlier buyers when it comes to any potential downstream resale.
On my Purosangue, the order is not yet locked so if similar mark-up then leaning towards canceling and eating the $30k non-refundable deposit. Cannot see paying $700k+ post tax for a car I intended to drive regularly…too many other nice options for SUVs well below that price level.

 

Here is a real transaction result relevant to the original poster interest in new vehicle prices. This result is for a Land Rover purchase, not a Ferrari.

I ordered a new Range Rover in late January with expected delivery early September. A tentative cash price was agreed, which was not above January 2025 MSRP, and I made a deposit with the understanding that sale price would be determined at delivery and I had the right to walk away with deposit refunded if price could not be agreed at delivery. I expected price changes due to inflation adjustments in manufacturing costs along with likely tariff adjustments.

The vehicle is Range Rover long wheelbase, hence made in England, not in Slovakia (EU) as some of the other Land Rover models. The English-USA tariff deal was made with very little agreed except a couple of specific tariffs, including on vehicles made in England.

My Range Rover left England in July and was sold and delivered to me in California on 28 July. Without further negotiation, the dealer offered and sold me the vehicle at the tentative price agreed in January 2025. I consider that price an additional discount since I paid in July dollars on a January pricing, half a year of inflation to my benefit on a fixed number purchase.

The same 2025 vehicle can still be specified on the Range Rover website today. The base MSRP has risen 2% compared to January, all the options are priced the same. I have heard the 2026 prices will have rises as well, I don't have factual basis to report those numbers.

 

3 things will happen with Ferrari and all high end vehicles

1) they will do nothing and just pass it along. There's already 100% tariffs in China and its still their 2nd largest market. The effect is only for the US market.
2) they will cut costs internally or ask their suppliers to cuts costs. In fact the "tariff excuse" is a pretty good one to get your suppliers to sell for less.
3) they will find that some options, like hyper expensive (and frankly rather useless) carbon fibre and passenger screens (that costs $50 and they charge $2000 for) are cut from orders as consumers try to keep prices under control. Taylor made may also take a hit in the US.

Most likely, what is happening all over is some money is eaten by the supplier and some by the buyer. Its all about supply and demand. And frankly, whining about paying 12% more import duty on your $400K Ferrari with $200K in options is the ultimate in "first world problems".

When the gas guzzlers tax came into being, what happened? Customers accepted it and sales just went up. Were they happy? No. Did they still buy? Yes. The gas guzzling tax was specifically aimed at low production makers with high performance vehicles.

One other point. Dealers make more money on used sales than new cars. Tariffs will increase the price of used cars and the demand. So dealers would offset a few lost sales of new. Not good for Ferrari, but not an issue for the dealers.

Do you know what really scares the heck of them? The CA and other states mandate for only electric vehicles by 2035. It could literally be the end of the US market for them.

 

this is truth here.