The 25% is on the selling price and they’re selling it for 15% less than they used to.
selling it for 15% less than they used to
That is not what the headline says:
Ferrari says it will raise prices by 10% on some models to offset auto tariffs
So, on those models where they are adding 10% to the sales price, they will be increasing the amount they pay in tariffs.
Very first line in the article:
Ferrari said Thursday it will raise prices by 10% on certain models after April 1 in response to new U.S. auto tariffs, adding up to $50,000 to the price of a typical Ferrari.
If that statement is accurate, then the tariff rises by 12,500 dollars, per vehicle imported, on the models where the sales price in being increased by 10%. They re not lowering the price of the vehicle by 15%.
For the Purosangue, which starts at about $430,000, that price hike amounts to about $43,000. For the limited edition F80, which starts at more than $3.5 million, the increase will add more than $350,000 to the price tag.
The buyers of these automobiles are the very wealthy, they will be paying more for their Ferrari, while the government will be collecting more in tariffs. For each F80 sold the government will receive an additional 84,000 for each F80 vehicle imported. If that puts you out of the market to buy it, you probably couldn't have afforded the F80 without the price hike anyway. It is the buyer who is paying more the vehicles where the price will increase by 10%. Are you feeling concerned for the ultra rich? You need not concern yourself, as it means nothing to them. They will pay the extra 43k-350k without even blinking.
So now let us get more specific:
The government will receive 952,600 for each F80 imported into the Treasury coffers. 3.5 million + 350K = 3,850,000.
3,850,000 / 4 = 962,500 tariff , whereas
3,500,000 / 4 = 875,000 tariff.
962,500 - 875,000 = 87,300 more in tariff for every F80 vehicle imported for the Treasury revenue.
3,850,000 - 962,500 = 2,887,500
3,500,000 - 875,000 = 2,625,000
Which means that Ferrari makes an additional 262,500 per F80 vehicle with the additional 10% sales price.
2,887,500 - 2,625,000 = 262,500
962,500 - 875,000 = 87,500 more in tariff per F80 imported with an additional 10% increase in sales price.
Not sure how you interpreted what you said about them lowering the price by 15%,because even the article itself makes no such mention.
Meanwhile, for the models where Ferrari is not adding an additional 10% increase in the sales price, the buyer sees no increase in their personal expenditure. The tariff will not impact them in cost at all. The price remains the same with or without the tariff amount paid by the seller, Ferrari.
For those models with 10% being added to the sales price, the buyer is paying that additional cost, but since the buyer is among the super wealthy, that additional cost means nothing to them. It is absorbed very easily & without any concern whatsoever. Ferrari lowers the tariff percentage on them, but increases their profit, though the profit is diminished by the additional tariff amount.
Does that help you see it?