(MENAFN) Luxury Italian automaker Ferrari announced a substantial increase in its first-quarter profits on Tuesday. However, the company issued a warning regarding potential risks to its 2025 earnings stemming from possible United States tariffs on European Union automobile imports.The Prancing Horse reported a net profit of €412 million ($466.3 million) for the first quarter, marking a significant 17% rise compared to the same period in the previous year.In its earnings report, Ferrari cautioned about the potential negative impact of U.S. tariffs on EU car imports on its financial performance. The company stated, “The (2025) guidance is subject to a potential risk of 50 basis points reduction on profitability percentage margins (EBIT and EBITDA margins), in relation to the update of the commercial policy following the introduction of import tariffs on EU cars into the USA.”Ferrari's financial outlook for 2025 includes an adjusted profit per share target of €8.6, projected net sales exceeding €7 billion, and an anticipated earnings before interest, taxes, depreciation, and amortization of at least €2.68 billion.CEO Benedetto Vigna expressed satisfaction with the company's performance, saying in a statement, “Another year is off to a great start.” He further elaborated, “In the first quarter of 2025, with very few incremental shipments year on year, all key metrics recorded double-digit growth, underscoring a strong profitability driven by our product mix and continued demand for personalizations.”The fluctuating trade tariff policies of U.S. President Donald Trump are creating instability for high-end car manufacturers.In April, Trump imposed a 25% tariff on imported automobiles. More recently, he attempted to moderate these taxes by issuing an executive order aimed at preventing multiple distinct levies, including an additional 25% tariff on steel and aluminum, from being "stacking" on top of each other.Ferrari had previously announced in late March its intention to raise the prices of certain models by 10% in response to the imposed duties.