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Aston Martin has attributed an earnings downgrade to US-imposed trade duties, while simultaneously urging the British authorities for greater proactive support.

The company, producing its cars in Warwickshire and south 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 shortfall.

Requesting Government Support

The carmaker expressed frustration with the UK government, telling investors that while it has communicated with representatives on both sides, it had positive discussions directly with the American government but needed greater initiative from British officials.

The company called on British authorities to safeguard the needs of niche automakers like Aston Martin, which provide numerous employment opportunities and add value to local economies and the wider British car industry network.

Global Trade Impact

Trump has shaken the global economy with a tariff conflict this year, heavily impacting the car sector through the introduction of a 25 percent duty on 3rd April, in addition to an previous 2.5 percent charge.

In May, the US president and Keir Starmer reached a agreement to limit duties on one hundred thousand British-made vehicles per year to 10%. This rate came into force on 30th June, coinciding with the last day of the company's second financial quarter.

Agreement Concerns

Nonetheless, the manufacturer expressed reservations about the trade deal, stating that the introduction of a American duty quota system adds further complexity and limits the group's ability to accurately forecast financial performance for this financial year end and potentially each quarter starting in 2026.

Additional Factors

Aston Martin also cited reduced sales partly due to increased potential for supply chain pressures, particularly after 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 led to a production freeze.

Market Response

Shares in Aston Martin, listed on the LSE, fell by over 11 percent as markets opened on Monday morning before partially rebounding to be down 7%.

Aston Martin sold one thousand four hundred thirty vehicles in its third quarter, missing previous guidance of being broadly similar to the one thousand six hundred forty-one vehicles sold in the equivalent quarter last year.

Future Initiatives

The wobble in demand coincides with the manufacturer gears up to release its flagship hypercar, a rear-engine supercar priced at around $1 million, which it hopes will increase profits. Shipments of the car are expected to start in the final quarter of its financial year, though a forecast of about 150 deliveries in those three months was below previous expectations, reflecting engineering delays.

Aston Martin, well-known for its appearances in James Bond films, has initiated a review of its future cost and spending plans, which it indicated would probably result in reduced spending in engineering and development compared with previous guidance of approximately £2 billion between its 2025 and 2029 financial years.

Aston Martin also told shareholders that it no longer expects to generate positive free cash flow for the second half of its present fiscal year.

UK authorities was contacted for comment.