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Aston Martin has attributed an earnings downgrade to US-imposed tariffs, while simultaneously calling on the British authorities for more proactive support.

This manufacturer, which builds its vehicles in Warwickshire and south Wales, revised its profit outlook on Monday, marking the second such revision this year. It now anticipates deeper losses than the earlier estimated £110 million deficit.

Requesting Government Backing

The carmaker voiced concerns with the UK government, telling shareholders that despite having communicated with officials from both the UK and US, it had positive discussions directly with the American government but needed greater initiative from UK ministers.

It urged UK officials to protect the interests of small-volume manufacturers like Aston Martin, which create thousands of jobs and contribute to regional finances and the wider British car industry network.

International Commerce Effects

Trump has shaken the worldwide markets with a trade war this year, significantly affecting the car sector through the introduction of a 25 percent duty on 3rd April, on top of an existing 2.5 percent charge.

In May, the US president and Keir Starmer reached a agreement to limit duties on one hundred thousand British-made cars per year to 10%. This tariff level took effect on 30th June, coinciding with the final day of the company's second financial quarter.

Agreement Criticism

Nonetheless, Aston Martin criticised the bilateral agreement, stating that the introduction of a US tariff quota mechanism introduces further complexity and limits the group's ability to accurately forecast financial performance for the current fiscal year-end and possibly each quarter starting in 2026.

Additional Challenges

Aston Martin also pointed to weaker demand partly due to increased potential for supply chain pressures, particularly following a recent cyber incident at a major UK automotive manufacturer.

The British car industry has been shaken this year by a digital breach on Jaguar Land Rover, which led to a manufacturing halt.

Financial Response

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

Aston Martin delivered 1,430 cars in its third quarter, missing previous guidance of being roughly equal to the 1,641 vehicles delivered in the same period the previous year.

Future Initiatives

The wobble in sales coincides with Aston Martin prepares to launch its Valhalla, a rear-engine supercar costing approximately $1 million, which it expects will boost earnings. Deliveries of the vehicle are scheduled to start in the final quarter of its fiscal year, though a forecast of approximately one hundred fifty units in those final quarter was below earlier estimates, due to technical setbacks.

The brand, famous for its appearances in James Bond films, has started a review of its upcoming expenditure and spending plans, which it indicated would likely lead to reduced capital investment in R&D versus earlier forecasts of about £2bn between its 2025 to 2029 fiscal years.

The company also told shareholders that it does not anticipate to generate positive free cash flow for the second half of its present fiscal year.

UK authorities was approached for comment.