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Aston Martin has attributed an earnings downgrade to US-imposed trade duties, as it urging the UK government for more proactive support.

This manufacturer, producing its cars in factories across England and Wales, lowered its profit outlook on Monday, representing the another revision this year. It now anticipates deeper losses than the previously projected £110 million deficit.

Requesting Government Support

The carmaker expressed frustration with the UK government, telling shareholders that despite having engaged with officials on both sides, it had productive talks directly with the American government but required more proactive support from British officials.

It urged UK officials to safeguard the interests of niche automakers like Aston Martin, which create thousands of jobs and contribute to local economies and the broader UK automotive supply chain.

Global Trade Effects

Trump has disrupted the worldwide markets with a tariff conflict this year, significantly affecting the car sector through the imposition of a 25% tariff on 3rd April, on top of an previous 2.5 percent charge.

During May, the US president and Keir Starmer agreed to a deal to cap tariffs on 100,000 UK-built vehicles per year to 10 percent. This tariff level came into force on June 30, aligning with the final day of Aston Martin's Q2.

Trade Deal Criticism

However, the manufacturer expressed reservations about the trade deal, arguing that the introduction of a American duty quota system introduces further complexity and restricts the company's ability to precisely predict financial performance for the current fiscal year-end and potentially quarterly from 2026 onwards.

Additional Factors

The carmaker also cited reduced sales partially because of increased potential for supply chain pressures, particularly after a recent digital attack at a major UK automotive manufacturer.

The British car industry has been shaken this year by a cyber-attack on Jaguar Land Rover, which prompted a production freeze.

Market Response

Shares in the company, listed on the London Stock Exchange, dropped by more than 11% as trading opened on Monday morning before recovering some ground to be down 7%.

The group sold one thousand four hundred thirty cars in its third quarter, missing earlier projections of being roughly equal to the one thousand six hundred forty-one cars delivered in the equivalent quarter the previous year.

Future Initiatives

Decline in demand coincides with Aston Martin gears up to release its Valhalla, a rear-engine hypercar costing around £743,000, which it hopes will boost earnings. Deliveries of the vehicle are expected to begin in the final quarter of its fiscal year, although a projection of about 150 units in those final quarter was below previous expectations, reflecting technical setbacks.

Aston Martin, famous for its roles in the 007 movie series, has initiated a review of its upcoming expenditure and spending plans, which it indicated would likely result in lower capital investment in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 to 2029 fiscal years.

Aston Martin also informed investors that it no longer expects to achieve positive free cash flow for the second half of its present fiscal year.

The government was contacted for a statement.