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Aston Martin has blamed an earnings downgrade to Donald Trump's trade duties, while simultaneously calling on the UK government for more proactive support.

This manufacturer, which builds its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, marking the second such downgrade this year. It now anticipates a larger loss than the previously projected £110 million deficit.

Requesting Government Backing

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

The company called on UK officials to safeguard the needs of small-volume manufacturers like Aston Martin, which provide numerous employment opportunities and add value to regional finances and the wider British car industry network.

International Commerce Impact

Trump has shaken the worldwide markets with a tariff conflict this year, significantly affecting the automotive industry through the imposition of a 25% tariff on 3rd April, in addition to an existing 2.5% levy.

During May, the US president and Keir Starmer agreed to a deal to limit tariffs on one hundred thousand British-made cars per year to 10 percent. This tariff level came into force on 30th June, aligning with the last day of the company's Q2.

Agreement Criticism

Nonetheless, the manufacturer criticised the bilateral agreement, stating that the introduction of a US tariff quota mechanism introduces additional complications and restricts the group's ability to precisely predict financial performance for this financial year end and possibly each quarter starting in 2026.

Additional Challenges

The carmaker also pointed to reduced sales partly due to increased potential for logistical challenges, especially after a recent digital attack at a leading British car producer.

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

Financial Reaction

Stock in Aston Martin, traded on the London Stock Exchange, dropped by over 11 percent as trading opened on Monday at the start of the week before recovering some ground to stand 7 percent lower.

Aston Martin sold 1,430 cars in its third quarter, missing earlier projections of being roughly equal to the one thousand six hundred forty-one vehicles sold in the equivalent quarter the previous year.

Future Plans

Decline in demand coincides with Aston Martin gears up to release its Valhalla, a rear-engine supercar priced at around £743,000, which it hopes will boost earnings. Shipments of the vehicle are expected to start in the final quarter of its financial year, although a projection of about 150 units in those three months was below previous expectations, reflecting engineering delays.

The brand, famous for its appearances in James Bond films, has started a review of its future cost and spending plans, which it said would probably lead to lower capital investment in R&D versus earlier forecasts of about £2bn between its 2025 and 2029 financial years.

Aston Martin also told investors that it does not anticipate to achieve positive free cash flow for the second half of its current year.

UK authorities was approached for comment.