Ferrari (RACE) Stock Falls On Fears Of Trump Tariffs Targeting EU Imports

Ferrari NV (NYSE:RACE) shares dropped 2.9% to $476.84 Friday morning following sharp market declines across Europe, spurred by President Donald Trump's threat to impose a 50% tariff on all European Union imports starting June 1.

What To Know: Investors reacted swiftly to concerns that a transatlantic trade war could disrupt global supply chains and damage export-reliant firms like Ferrari.

The Italian luxury automaker generates over 30% of its revenue from the U.S. market, making it highly sensitive to any new trade barriers. A 50% tariff on EU goods could sharply increase the cost of importing Ferrari vehicles into the U.S., potentially forcing the company to either raise prices or absorb the margin hit, both damaging to its competitive edge and profitability in one of its largest markets.

Ferrari, known for its Maranello-based manufacturing and high-end performance vehicles, is emblematic of the kind of luxury EU exports that could face steep challenges under a protectionist U.S. trade policy. Retaliatory measures from the EU could further rattle investor confidence in globally exposed European firms.

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How To Buy RACE Stock

By now you're likely curious about how to participate in the market for Ferrari – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Ferrari, which is trading at $476.84 as of publishing time, $100 would buy you 0.21 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, RACE has a 52-week high of $509.13 and a 52-week low of $391.54.