American buyers of Ferrari’s (RACE) luxury vehicles will soon have to pay higher prices, as the Italian automaker looks to offset the burden of President Donald Trump’s tariffs.

The Trump administration’s new 25% tariffs on all imports of finished cars and trucks and of auto parts are set to go into effect on April 3. Almost half of all vehicles sold in the U.S. are imported, as are almost 60% of all parts in vehicles assembled in the U.S.

Ferrari said Thursday that the impact of the tariffs would be partially reflected in its pricing for almost all imports after April 2. Excluding imports of Ferrari 297, SF90, and Roma vehicles, new cars could become as much as 10% more expensive. Some 40% of Ferrari’s global sales come from the U.S. market.

“And while Ferrari demand may prove amongst the least elastic to moderate changes in price...Ferrari purchases are arguably amongst the most discretionary also, and so we could envision some buyers electing to delay taking delivery,” JPMorgan (JPM) analysts led by Ryan Brinkman said in a Thursday note.

Analysts at Bernstein (AB) led by Stephen Reitman argued in a Thursday note that U.S. customers won’t be pushed away by higher prices. Ferrari’s customers tend to be wealthier individuals who will be less impacted by tariffs, which put more pressure on poorer consumers.

“We are hard-pressed to think of any customer cohort in the U.S. that is better placed than Ferrari’s to absorb higher prices,” the Bernstein analysts said. “Any increase in new prices will be somewhat cushioned by the knowledge that the customer’s other Ferraris in their garage have seen their values rise.”

JPMorgan lowered its December 2025 price target for Ferrari by 12%, to $460 per share from $525 per share, while Bernstein maintained an outperform rating on the stock. Ferrari stock is up by almost 2% and trades at $421 per share.

Ferrari said its financial targets for 2025 will remain unchanged. The company has forecast adjusted earnings of at least 2.68 billion euros ($2.88 billion), an increase of at least 5%, and net revenue of more than 7 billion euros ($7.5 billion) for the full year.

Ferrari recorded net profit of 1.53 billion euros ($1.6 billion) and revenue of 6.7 billion euros ($7.2 billion) in 2024. That’s an increase of 21% and 12%, respectively, compared to 2023.

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