(March 28): Ferrari NV plans to raise prices for some of its cars by as much as 10% to deal with US President Donald Trump’s latest auto tariffs.

The Italian manufacturer said on Thursday its profit margins may get squeezed, but confirmed its financial guidance for the year, reassuring investors. Ferrari shares rose as much as 2.6% in Milan.

The US is Ferrari’s single biggest market and accounts for around a quarter of its total shipments. The brand’s US sales rose 6% last year, to 3,452 cars. Ferrari makes all of its vehicles in Maranello, Italy.

Ferrari in its statement flagged a potential 50 basis-point reduction risk to its Ebit and Ebitda margins. It pledged to fully absorb the cost of tariffs for the Ferrari 296, SF90 and Roma models, and partially for the remainder, by increasing prices by as much as 10%.

Trump on Wednesday signed a proclamation to implement a 25% tariff on auto imports and pledged harsher punishment on the European Union and Canada if they join forces against the US, expanding a trade war and triggering threats of retaliation.

Ferrari’s US customers won’t be deterred by higher prices, according to Bernstein analysts. “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,” the team led by Stephen Reitman wrote in a note on Thursday.

Ferrari was spun off almost a decade ago by Fiat. The company plans to unveil its first fully electric model later this year.

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