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Aston Martin has blamed an earnings downgrade to Donald Trump's trade duties, while simultaneously urging the British authorities for greater proactive support.

This manufacturer, producing its cars in factories across England and Wales, revised its profit outlook on Monday, representing the second such downgrade this year. The firm expects deeper losses than the previously projected £110m shortfall.

Seeking Government Backing

Aston Martin expressed frustration with the UK government, informing investors that while it has engaged with representatives on both sides, it had positive discussions directly with the US administration but needed greater initiative from British officials.

It urged UK officials to protect the interests of niche automakers like Aston Martin, which provide thousands of jobs and contribute to local economies and the broader UK automotive supply chain.

Global Trade Impact

The US President has disrupted the global economy with a tariff conflict this year, significantly affecting the car sector through the imposition of a 25 percent duty on 3rd April, in addition to an previous 2.5% levy.

During May, the US president and Keir Starmer agreed to a agreement to limit duties on 100,000 British-made cars per year to 10 percent. This rate took effect on June 30, coinciding with the last day of the company's Q2.

Trade Deal Criticism

Nonetheless, Aston Martin criticised the bilateral agreement, stating that the introduction of a US tariff quota mechanism introduces further complexity and limits the group's capacity to precisely predict financial performance for this financial year end and potentially quarterly from 2026 onwards.

Additional Factors

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

The British car industry has been shaken this year by a digital breach on the country's largest automotive employer, which prompted a production freeze.

Market Response

Stock in the company, traded on the LSE, fell by more than 11% as trading opened on Monday morning before recovering some ground to stand down 7%.

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

Upcoming Plans

Decline in demand coincides with Aston Martin gears up to release its flagship hypercar, a mid-engine supercar priced at around $1 million, which it expects will boost profits. Deliveries of the vehicle are scheduled to start in the final quarter of its fiscal year, though a forecast of about 150 units in those three months was below earlier estimates, due to technical setbacks.

The brand, famous for its roles in the 007 movie series, has initiated a review of its future cost and investment strategy, which it said would probably result in lower spending in engineering and development versus earlier forecasts of about £2bn between its 2025 and 2029 financial years.

Aston Martin also told shareholders that it no longer expects to generate profitable cash generation for the latter six months of its current year.

The government was approached for comment.