Luxury automakers like Ferrari (RACE) may be insulated from tariff-fueled price hikes due to their ultra-high-net-worth (UHNW) clientele, but even those well-heeled buyers may have their limits.

Typically, UHNW buyers aren’t dissuaded by price hikes; when demand for a product is strong or in limited supply — for instance, during the pandemic — they are willing to pay premiums for products like Rolex watches, fine scotches, and of course, Ferrari sports cars.

It’s why Maranello-based Ferrari didn’t decrease or fully withdraw its profit guidance for the year during its latest earnings report. The Italian automaker did say, however, that profit metrics like EBIT and EBITDA margins could see a potential 50 basis point hit, depending on how President Trump’s trade war plays out, though the possibility of “offsets” in operations may diminish the impact, management said. Currently, foreign auto imports are subject to 25% tariffs.

In response, Ferrari’s pricing strategy is noteworthy and two-fold.

For its ultra-premium cars like the $1 million+ Daytona SP3, upcoming F80 hypercar, and the new 12Cilindri coupe, the company will hike prices by a maximum of 10%. The thinking is these buyers will at least pay some of the tariff — in some cases, an additional $100,000 — because this “marginal” amount won’t dissuade them from a purchase of a limited-edition Ferrari. All buyers of these highest-end Ferraris are multi-repeat clientele and generally don’t balk when Ferrari comes asking.

For Ferrari’s lower-priced cars, such as the Roma coupe, 296 sports car, and SF90 hybrid sports car, the company will hold prices steady. The thinking here is that these buyers are more price sensitive, and Ferrari faces more competitors in the space, including Aston Martin (ARGGY), Bentley (VWAGY), and Ferrari’s regional rival Lamborghini (VWAGY).

Ferrari’s CEO Benedetto Vigna says his clients appreciate two aspects of Ferrari’s pricing strategy.

“No. 1, we've been clarifying right away what we intend to do; and two, that we contribute, OK? We contribute to this price increase,” Vigna said on Ferrari’s analyst call on Tuesday, citing talks he’s had with customers.

“We don't ask them to pay all the bill, but we were very clear telling [them] that some models will have no price increase, some others up to … a maximum 10%. So they appreciate it a lot.”

Vigna said the company will remain “vigilant” in response to changes in purchasing behavior, but at the moment the company hasn’t seen any shift post-tariffs.

Lamborghini also reported stellar first quarter results, though it noted the “uncertain” background in international trade remains. The company said it will “closely monitor the situation and evaluate potential future scenarios and implications for its business,” but at the moment, business remains robust with a “strong order book” of future sales.