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Aston Martin has blamed an earnings downgrade to Donald Trump's tariffs, as it calling on the British authorities for greater proactive support.

The company, producing its cars in Warwickshire and south Wales, lowered its earnings forecast on Monday, marking the second such revision in the current year. It now anticipates deeper losses than the previously projected £110m deficit.

Requesting Government Backing

Aston Martin voiced concerns with the UK government, telling investors that despite having engaged with representatives on both sides, it had positive discussions with the American government but required more proactive support from UK ministers.

The company called on British authorities to protect 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 Effects

The US President has shaken the worldwide markets with a tariff conflict this year, heavily impacting the automotive industry through the imposition of a 25 percent duty on 3rd April, on top of an previous 2.5% levy.

During May, the US president and Keir Starmer reached a deal to cap tariffs on 100,000 UK-built cars per year to 10%. This rate came into force on 30th June, coinciding with the last day of Aston Martin's second financial quarter.

Trade Deal Criticism

Nonetheless, the manufacturer criticised the bilateral agreement, stating that the introduction of a American duty quota system introduces further complexity and limits the company's ability to accurately forecast financial performance for the current fiscal year-end and possibly quarterly from 2026 onwards.

Other Factors

The carmaker also pointed to reduced sales partially because of increased potential for logistical challenges, particularly after a recent digital attack at a major UK automotive manufacturer.

UK automotive sector has been shaken this year by a cyber-attack on Jaguar Land Rover, which prompted a manufacturing halt.

Market Reaction

Shares in the company, listed on the London Stock Exchange, fell by over 11 percent as markets opened on Monday at the start of the week before recovering some ground to stand down 7%.

Aston Martin delivered 1,430 cars in its Q3, falling short of earlier projections of being roughly equal to the one thousand six hundred forty-one cars delivered in the equivalent quarter the previous year.

Upcoming Plans

The wobble in demand comes as the manufacturer gears up to release its Valhalla, a mid-engine hypercar priced at around £743,000, which it hopes will increase earnings. Shipments of the car are expected to start in the final quarter of its fiscal year, although a forecast of about 150 deliveries in those three months was below earlier estimates, reflecting engineering delays.

Aston Martin, famous for its roles in James Bond films, has started a evaluation of its future cost and spending plans, which it indicated would probably result in reduced capital investment in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 and 2029 financial years.

Aston Martin 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 contacted for a statement.