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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.

The company, producing its vehicles in factories across England and Wales, lowered its profit outlook on Monday, marking the second such revision this year. The firm expects a larger loss than the earlier estimated £110m deficit.

Requesting Official Support

The carmaker voiced concerns with the UK government, informing investors that despite having communicated with representatives from both the UK and US, it had positive discussions with the US administration but needed more proactive support from British officials.

The company called on UK officials to protect the needs of small-volume manufacturers like Aston Martin, which provide numerous employment opportunities and add value to local economies and the broader UK automotive supply chain.

Global Trade Effects

The US President has disrupted 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 previous 2.5 percent charge.

During May, the US president and Keir Starmer reached a agreement to limit duties on 100,000 British-made vehicles annually to 10%. This rate took effect on 30th June, coinciding with the last day of Aston Martin's second financial quarter.

Agreement Criticism

However, the manufacturer expressed reservations about the trade deal, arguing that the implementation of a US tariff quota mechanism adds further complexity and limits the group's capacity to precisely predict earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Additional Challenges

The carmaker also pointed to reduced sales partly due to greater likelihood for supply chain pressures, particularly following a recent digital attack at a leading British car producer.

UK automotive sector has been shaken this year by a digital breach on the country's largest automotive employer, which prompted a manufacturing halt.

Financial Reaction

Stock in Aston Martin, traded on the London Stock Exchange, dropped by more than 11% as trading opened on Monday morning before recovering some ground to stand down 7%.

Aston Martin sold one thousand four hundred thirty cars in its third quarter, falling short of earlier projections of being roughly equal to the 1,641 vehicles sold in the equivalent quarter last year.

Future Initiatives

Decline in demand coincides with the manufacturer prepares to launch its Valhalla, a mid-engine supercar priced at around £743,000, which it expects will boost earnings. Deliveries of the car are expected to begin in the last quarter of its fiscal year, although a forecast of approximately one hundred fifty units in those three months was below earlier estimates, reflecting technical setbacks.

Aston Martin, well-known for its appearances in the 007 movie series, has initiated a evaluation of its upcoming expenditure and spending plans, which it indicated would probably lead to reduced spending in R&D compared with previous guidance of about £2bn between its 2025 to 2029 financial years.

The company also told investors that it no longer expects to generate positive free cash flow for the latter six months of its present fiscal year.

UK authorities was contacted for a statement.