Luxury cars never come cheap, but how are tariffs impacting the auto market?

President Donald Trump’s tariffs have impacted a plethora of goods and products, including automobiles. How are these tariffs impacting luxury vehicles, of which more than 40% are imported into the U.S.?

The answer to that largely depends on which luxury automaker you ask.

Limited impact on luxury cars

“We haven’t seen any significant change in terms of our sales and orders,” Gerry Spahn, head of communications for Rolls-Royce Motor Cars, told Straight Arrow News.

An important factor, Spahn said,  in the luxury car space is that more people are ordering cars anywhere from three months to 24 months in advance. So, the first move the company took was to guarantee pricing on any orders already placed.

“It’s important to us that not only our clients, but our dealers, that we have a high level of visibility and stability on the pricing and supply for these,” Spahn said. “These are very expensive commissions. They range, on average, in the neighborhood of $500,000 to $600,000.”

Rolls-Royce makes some of the most expensive cars in the world. As Spahn described it, they are not a volume brand but rather a value brand.

Spahn stated that the company delivered approximately 5,700 cars in 2024, with around 33% of those going to North America.

“Our tactic has been to be very measured and not to create volatility for our clients and our dealers,” Spahn said. “That’s the most important thing.”

Rolls-Royce is a British brand, and Spahn pointed to the trade deal between the two countries.

“We have very strong visibility on what the tariff will be for imports from the U.K.,” Spahn said. “So, for us, that’s important. We don’t see any reason to see any variation on that at the moment.”

While Spahn discussed the limited impact of the tariffs, he noted that one area where they may have seen a slight change is in the focus of their clients.

“Our clients are all largely businesspeople, and a lot of them are doing international business,” Spahn said. “So, we do see some clients that are preoccupied with their businesses, but it’s not having a substantial impact on our business.”

Larger impact on luxury cars

While Rolls-Royce may not be seeing a significant impact due to tariffs, the CEO of Lamborghini said tariffs are causing even some of their wealthiest buyers to pause purchases. He said part of the issue is the president’s indecision.

“Some are waiting because they want to be sure that this is the final number that is going to be in place,” Stephan Winkelmann, Lamborghini CEO, said to CNBC. “Others are fine with it, or we will have negotiations.”

Like with Rolls-Royce and most luxury brands, most of the cars being delivered this year were ordered up to two years ago. The company announced prices will rise on its Urus and the Temerario models.

Lamborghini delivered a record 10,000-plus cars in 2024. The U.S. represented the largest market for those cars, with around 3,000 coming stateside.

Part of the president’s push with these tariffs is to bring more production back to America. Winkelmann said that will never happen when it comes to Lamborghinis because “made in Italy” is core to the brand.

While only the very wealthy can afford their vehicles, Winkelmann said they are keeping an eye on the price tags.

“They are millionaires or billionaires for a reason, so they know what they’re doing and why they’re doing things,” Winkelmann told CNBC. “For us, free trade is the right approach. We all know that is what we want. But then there is the reality, and we have to deal with complexity, since we are in business. We are ready to face whatever comes.”

How the wealthy spend money

These luxury brands are typically owned by some of the wealthiest people in the country, who also account for a large part of American consumer spending in general.

The 10% of the richest Americans now account for half of all consumer spending in the U.S., according to Moody’s Analytics, a record high.

Trump himself has reportedly owned several Rolls-Royce vehicles along with a Lamborghini, Ferrari and more luxury cars.

Even for those with vast amounts of money, keeping an eye on the global market is important for every consumer.

“We’re going to give our clients and our dealers full visibility on pricing,” Spahn said. “We’re going to mitigate the cost as much as we can to keep prices relatively stable.”