“Being the U.S., by far our biggest market, we could not, let’s say, increase the price [at] the same level as the tariffs were increased, and, at the same time, the market was going down,”  CEO Stephan Winkelmann told Fortune. “So we had less cars sold, and with less margin on those cars to be delivered in the second half of the year.”

The luxury automaker, owned by the Volkswagen Group through Audi, reported its full-year earnings for 2025 on Thursday. Lamborghini saw a new delivery record of 10,747 cars in 2025 and reached $3.7 billion (€3.2 billion) in revenue, a 3.3% year-over-year increase. However, operating income fell to $885 million (€768 million) from a record of $962 million (€835 million) in 2024, and the carmaker had a profitability of 24%, also slightly down from last year.

Winkelmann noted the dip in operating margins was in part a result of tariffs imposed by the Trump administration at the beginning of 2025, which precipitated a price increase for the luxury cars. Lamborghini said last year it would raise prices for its Temerario and Urus models by 7% and for the Revuelto by 10%. Winkelmann indicated Lamborghini would be unable to raise costs more, with the import taxes cutting into profitability as a result.

Tariffs cost the auto industry nearly $35 billion last year, according to an Automotive News analysis, with vehicles from the European Union, such as Lamborghini, hit with a 15% import tax. For luxury automakers, the import taxes have had a range of effects. For Ferrari, customized deliveries helped offset the impact of the levies and lower shipments for some models. In January, Mercedes reported a 19% slump in sales growth in the U.S. and a quarterly sales decrease of 12% year-over-year in part as a result of the tariffs.

Lamborghini also saw a dip in operating income as a result of negative exchange rates and the decision to pivot away from a fully electric Lanzador in favor of a plug-in hybrid model instead, Winkelmann said.

How Lamborghini is navigating tariffs

Lamborghini appears poised to continue navigating tariffs. Last summer, Winkelmann noted that even Lamborghini’s wealthiest customers were reconsidering the timing of their purchases as a result of the tariffs, waiting for import tax levels to become stable.

“Some are waiting because they want to be sure that this is the final number that is going to be in place,” Winkelmann said in an interview with CNBC in August 2025. “Others are fine with it, or we will have negotiations.”

Winkelmann told Fortune tariff uncertainty interrupted between six to eight weeks of shipments for the automaker, but was able to offset some disruptions and order cancellations from customers waiting on the company’s shortlist.

He expected more consistent deliveries in the coming year as tariffs level off. The company was not impacted by tariffs imposed under the International Emergency Economic Powers Act, which were struck down by the Supreme Court last month, so the import taxes have and will remain at about 15%. Winkelmann said he predicts “a new normality” of customers knowing what to expect with tariffs and adjusting to the cars’ new prices.

Lamborghini’s next challenges will be navigating the war in Iran, with conflict in the Middle East threatening the key luxury car market in the area. According to GlobalData, the United Arab Emirates typically sees more than 300,000 vehicle sales annually, with about 20% of those being premium imports.

With a drop in both the U.S. and Chinese markets, and turmoil in the Middle East, Winkelmann said Lamborghini will rely on sustained demand in markets in Europe, as well as Japan and Korea.

“The global economy, all this so far, could not offset the clarity of Lamborghini,” he said.