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Aston Martin has blamed a profit warning to US-imposed tariffs, while simultaneously calling on the UK government for more active assistance.

This manufacturer, producing its vehicles in factories across England and Wales, lowered its profit outlook on Monday, marking the second such revision in the current year. It now anticipates a larger loss than the previously projected £110 million shortfall.

Requesting Official Backing

The carmaker expressed frustration with the UK government, informing investors that despite having communicated with representatives from both the UK and US, it had positive discussions with the American government but needed more proactive support from UK ministers.

It urged UK officials to protect the needs of small-volume manufacturers like Aston Martin, which provide thousands of jobs and contribute to local economies and the wider British car industry network.

Global Trade Impact

Trump has disrupted 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 percent charge.

During May, American and British leaders agreed to a agreement to cap duties on 100,000 UK-built vehicles per year to 10%. This tariff level came into force on 30th June, coinciding with the final day of the company's Q2.

Agreement Concerns

However, Aston Martin criticised the bilateral agreement, arguing that the implementation of a American duty quota system introduces additional complications and limits the group's capacity to precisely predict earnings for this financial year end and potentially each quarter starting in 2026.

Additional Challenges

The carmaker also pointed to reduced sales partly due to increased potential 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 cyber-attack on the country's largest automotive employer, which prompted a production freeze.

Market Response

Stock in the company, listed on the London Stock Exchange, fell by over 11 percent as trading opened on Monday at the start of the week before partially rebounding to be down 7%.

The group delivered 1,430 vehicles in its third quarter, missing previous guidance of being roughly equal to the one thousand six hundred forty-one cars delivered in the equivalent quarter the previous year.

Future Initiatives

Decline in demand comes as Aston Martin gears up to release its Valhalla, a rear-engine supercar costing around £743,000, which it expects will boost profits. Deliveries of the car are scheduled to start in the last quarter of its fiscal year, although a forecast of approximately one hundred fifty units in those three months was lower than earlier estimates, reflecting technical setbacks.

Aston Martin, well-known for its appearances in James Bond films, has started a evaluation of its upcoming expenditure and investment strategy, which it said would likely lead to reduced capital investment in R&D versus earlier forecasts of about £2bn between its 2025 and 2029 fiscal 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 approached for a statement.