Lamborghini CEO warns tariffs have forced even its wealthiest consumers—who have an average of 5 cars in their garage—to waver on buying a new ride

CEO Stephan Winkelmann said some of its U.S. customers, who have at least $400,000 to shell out for a base model, are waiting to see where the Trump administration’s tariff rate for the EU ultimately settles. Its customers are waiting, even though the U.S. reached a deal to impose a 15% tariff on some EU products, including cars, in exchange for several pledges by the EU. This includes buying more AI chips and military equipment from the U.S. 

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

Winkelmann said while Lamborghini can resist the pressure of tariffs because of its large backlog of orders—cars delivered today were ordered a year or two ago—the company will still face pressure from U.S. tariffs on the EU. Lamborghini vehicles are made in Italy, and this point is a differentiator for the brand. While the U.S. is its largest market, the car company’s production can’t be moved there, a strategy Trump has suggested for companies to avoid tariffs.

“For us, free trade is the right approach,” Winkelmann said. “We all know that one is what we want. The other is the reality, and we have to deal with complexity since we are in business, and we are ready to face whatever comes.”

Lamborghini, which is owned by Volkswagen’s Audi Group, reported a 16% year-over-year increase that saw it bring in more than 3 billion euros ($3.5 billion) in revenue for the first time for fiscal 2024. Its operating income also rose by double digits to 835 million euros ($974 million). The company has also launched three new plug-in hybrid models since 2023. 

Lamborghini did not immediately respond to Fortune’s request for comment.

Providing another boost is Lamborghini’s increasingly diverse customer base. Younger wealthy customers from all over the world have pushed the average age of a Lambo owner below 45. In Asia, the average customer is about 30. The average buyer owns five cars, while buyers of its upscale, pricier model, the Revuelto, have 10, on average.

As for Lamborghini customers’ behavior on tariffs and possible price increases, Winkelmann said to trust their judgment. 

“They are maybe millionaires or billionaires for a reason, so they know what they’re doing and why they’re doing things,” he said.