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Aston Martin has attributed an earnings downgrade to Donald Trump's tariffs, while simultaneously calling on the British authorities for more proactive support.

The company, producing its cars in factories across England and Wales, revised its profit outlook on Monday, representing the another revision in the current year. The firm expects a larger loss than the earlier estimated £110 million shortfall.

Requesting Government Backing

The carmaker expressed frustration with the UK government, telling investors that while it has communicated with officials from both the UK and US, it had productive talks directly with the US administration but needed greater initiative from British officials.

It urged UK officials to protect the interests of small-volume manufacturers like Aston Martin, which create numerous employment opportunities and add value to local economies and the wider British car industry network.

Global Trade Effects

The US President has shaken the global economy with a tariff conflict 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 agreement to limit tariffs on 100,000 British-made cars 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

Nonetheless, Aston Martin expressed reservations about the trade deal, stating that the implementation of a American duty quota system introduces additional complications and limits the group's capacity to precisely predict earnings for the current fiscal year-end and potentially quarterly from 2026 onwards.

Additional Challenges

Aston Martin also cited weaker demand partly due to greater likelihood for logistical challenges, especially following a recent digital attack at a major UK automotive manufacturer.

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

Financial Response

Shares in the company, traded on the LSE, fell by more than 11% as markets opened on Monday at the start of the week before partially rebounding to be 7 percent lower.

The group sold one thousand four hundred thirty cars in its Q3, falling short of previous guidance of being roughly equal to the one thousand six hundred forty-one cars sold in the same period the previous year.

Future Initiatives

The wobble in sales comes as the manufacturer prepares to launch its flagship hypercar, a rear-engine hypercar priced at around $1 million, which it expects will increase profits. Deliveries of the vehicle are expected to begin in the last quarter of its fiscal year, although a projection of about 150 units in those final quarter was lower than earlier estimates, reflecting engineering delays.

The brand, famous for its roles in James Bond films, has initiated a review of its future cost and investment strategy, which it indicated would likely lead to reduced capital investment in engineering and development versus previous guidance of approximately £2 billion between its 2025 to 2029 financial years.

The company also informed investors that it does not anticipate to generate profitable cash generation for the latter six months of its current year.

UK authorities was approached for a statement.