Ultra-Luxury Car Parts: Tariff Impact on Restoration Costs

The 25% U.S. tariff on imported auto parts, effective May 2025, has created a crisis for owners and restorers of ultra-luxury vehicles. From rare Ferrari Classiche components to bespoke Rolls-Royce coachwork, the cost to maintain and restore these automotive masterpieces has surged. This article examines the tariff’s impact on high-end car parts and reveals strategies to navigate rising costs without compromising quality.

The Tariff Toll on Ultra-Luxury Components

Key Affected Parts

Case Study: 1987 Ferrari Testarossa Restoration

A recent client project saw costs jump 31% due to tariffs:

• Engine Rebuild: $220k → $275k (25% on Italian crankshaft/pistons)

• Body Panels: $180k → $225k (25% on Swiss-made aluminum)

• Taxes/Duties: $127k → $190k

Legal Strategies to Reduce Costs

1. USMCA-Compliant Sourcing

Parts manufactured in Mexico or Canada under USMCA rules qualify for 0% tariffs if they meet content requirements:

• Example: A Montreal-based supplier now produces Ferrari 250 GTO replica exhausts (55% North American content) at 40% savings vs. Italian imports.

2. "Vintage" Parts Classification

Components over 40 years old may qualify as antiques (HS Code 9705):

• Duty Rate: 0% (vs. 25%)

• Requires: Provenance documentation (e.g., factory build sheets).

3. Repair vs. Replacement Rules

Damaged parts shipped for repair can avoid tariffs under:

• Subheading 9802.00.40: No duty if returned within 3 years.

• Example: Sending a cracked Bugatti EB110 camshaft to Germany for laser welding saves $11k vs. buying new.

Alternative Supply Chains

Approved Supplier Networks

Specialists now replicate rare components:

• Process: Scan original part → Print in aerospace-grade alloys → Hand-finish.

• Cost Example: Lamborghini Miura door handle:

  • Original: $14k (Italy) + 25% tariff = $17.5k

  • 3D Printed: $9k (Texas) + 0% tariff = $9k

Timing Strategies for Cost Control

1. Bulk Purchasing Before Tariff Hikes

Stockpile frequently needed parts:

• Ideal For: Gaskets, seals, fasteners.

2. Currency Hedging

Lock in EUR/USD rates when ordering European parts:

• Tool: 90-day forward contracts to mitigate exchange risks.

3. Tariff Drawback Program

Recover 99% of duties if parts are re-exported (e.g., restored cars sold abroad).

Preserving Value Amid Tariffs

While tariffs have complicated ultra-luxury restorations, strategic sourcing and legal classifications can offset cost increases.

Need help sourcing parts? 

Our international shipping team specializes in tariff-compliant solutions for Ferraris, Rolls-Royces, and other ultra-luxury vehicles.