Trump auto tariffs may be 'worse' for Ferrari: JPMorgan

Even affluent luxury car buyers whitethorn beryllium stopped successful their tracks owed to caller Trump car tariffs.

And that could spell occupation for sports car fable Ferrari (RACE), JPMorgan autos expert Ryan Brinkman warned. The net implications of this circular of tariffs "are worse for Ferrari," Brinkman wrote successful a enactment Thursday up of the opening bell.

"While Ferrari was not impacted by earlier projected tariffs connected Canada and Mexico, ... Italy on with each different countries are taxable to the caller circular of tariffs arsenic laid retired successful yesterday's enforcement order," Brinkman explained. "Ferrari critically derives upward of ~40% of its planetary income from the US, which besides happens to beryllium its higher borderline market."

He added, "While Ferrari request whitethorn beryllium amongst the slightest elastic to mean changes successful terms (such arsenic the +7% terms increases implemented successful the UK aft Brexit), Ferrari purchases are arguably amongst the astir discretionary also, and truthful we could envision immoderate buyers electing to hold taking delivery.

Brinkman slashed his terms people connected Ferrari to $460 from $525, but helium kept an Overweight standing connected the stock.

Ferrari shipped 13,752 cars successful 2024, up 1% twelvemonth implicit year. Net income and operating profits roseate 12% and 17%, respectively. The Americas portion led the mode for Ferrari past year, with shipments up 5% twelvemonth implicit year.

Whether that momentum continues heavy into 2025 is present successful question.

Trump said Wednesday the US volition enforce 25% tariffs connected imports of cars and car parts, which volition instrumentality effect connected April 3. The measures volition use to finished cars, trucks, and definite car parts.

"This volition proceed to spur maturation that you've ne'er seen before," Trump said from the White House astir the caller tariffs.

Investors and Wall Street don't look to agree, fixed the effect successful banal markets and from analysts aboriginal connected Thursday.

The tariffs could rise automakers' accumulation costs and stunt user request done higher prices. About fractional of each vehicles sold successful the US are imported.

Read more: What Trump's tariffs mean for the system and your wallet

Ferrari banal fell 2% successful premarket trading, extending a 3% year-to-date slide.

Shares of the Big Three US automakers, which physique vehicles abroad, besides dropped successful premarket trading. General Motors (GM) and Ford (F) were down 7% and 3%, respectively, portion Europe-focused Stellantis (STLA) fell 2%.

Japanese automakers Toyota (TM) and Honda (HMC) US-listed banal slid 2% each.

Brinkman went connected to chopped estimates and terms targets connected Ford and General Motors, citing "increased imaginable for worldly net hazard from draconian car tariffs that present look likelier than ever to beryllium imposed arsenic soon arsenic April 3."