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Aston Martin has blamed an earnings downgrade to US-imposed trade duties, as it urging the UK government for greater proactive support.

This manufacturer, producing its cars in factories across England and Wales, lowered its profit outlook on Monday, marking the second such downgrade in the current year. The firm expects deeper losses than the earlier estimated £110m shortfall.

Seeking Official Backing

The carmaker voiced concerns with the British leadership, telling investors that despite having engaged with officials from both the UK and US, it had productive talks with the US administration but needed more proactive support from UK ministers.

It urged British authorities to protect the interests of small-volume manufacturers like Aston Martin, which provide numerous employment opportunities and contribute to local economies and the broader UK automotive supply chain.

International Commerce Effects

Trump has shaken the global economy with a trade war this year, significantly affecting the automotive industry through the imposition of a 25% tariff on April 3, on top of an existing 2.5% levy.

During May, the US president and Keir Starmer reached a deal to cap duties on 100,000 UK-built cars annually to 10%. This rate took effect on June 30, coinciding with the final day of Aston Martin's second financial quarter.

Trade Deal Concerns

Nonetheless, Aston Martin expressed reservations about the bilateral agreement, arguing that the implementation of a US tariff quota mechanism introduces additional complications and limits the group's ability to precisely predict earnings for the current fiscal year-end and possibly each quarter starting in 2026.

Other Challenges

Aston Martin also cited reduced sales partly due to greater likelihood for supply chain pressures, especially following a recent digital attack at a major UK automotive manufacturer.

The British car industry has been rattled this year by a digital breach on the country's largest automotive employer, which led to a manufacturing halt.

Financial Response

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

The group delivered 1,430 vehicles in its Q3, missing earlier projections of being broadly similar to the 1,641 cars delivered in the equivalent quarter last year.

Upcoming Initiatives

Decline in demand coincides with Aston Martin prepares to launch its flagship hypercar, a mid-engine supercar costing around $1 million, which it expects will increase earnings. Shipments of the car are expected to start in the final quarter of its fiscal year, though a forecast of about 150 units in those final quarter was below earlier estimates, due to engineering delays.

The brand, well-known for its appearances in James Bond films, has started a review of its upcoming expenditure and investment strategy, which it said would probably result in reduced capital investment in engineering and development compared with previous guidance of approximately £2 billion between its 2025 and 2029 financial years.

The company also informed investors that it no longer expects to generate profitable cash generation for the second half of its current year.

UK authorities was contacted for a statement.