Ferrari, the luxury car manufacturer, cautions about potential U.S. tariff challenges following a 17% surge in first-quarter earnings.

Luxury carmaker Ferrari on Tuesday reported a significant upswing in first-quarter profit, citing robust demand for personalized vehicles. The Maranello, Italy-based sports car manufacturer posted net profit of 412 million euros ($466.3 million) for the first three months of the year, reflecting a 17% increase from the same period last year. Analysts had expected first-quarter net profit to come in at 410 million euros, according to Reuters poll. "Another year is off to a great start," Ferrari CEO Benedetto Vigna said in a statement. "In the first quarter of 2025, with very few incremental shipments year on year, all key metrics recorded double-digit growth, underscoring a strong profitability driven by our product mix and continued demand for personalizations," Vigna said. However, Ferrari warned that the introduction of U.S. tariffs on EU cars imported into the U.S. could negatively impact the firm's profitability this year. The automaker said that the introduction of tariffs could lead to a 50 basis points reduction on profitability percentage margins (EBIT and EBITDA margins). This is in addition to the 10% price hikes announced in late March on certain models in response to the tariffs. The price hikes would add up to $50,000 to the price of a typical Ferrari. Luxury carmakers are contending with the disruptive impact of Trump's back-and-forth trade tariff policy. Several European auto giants reported a sharp downturn in quarterly profit this earnings season, with many suspending or cutting financial guidance as Trump's tariffs take their toll. Shares of the Milan-listed stock traded around 0.8% lower at 12:44 p.m. London time, despite the company's strong first-quarter earnings report.