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Aston Martin has blamed an earnings downgrade to US-imposed tariffs, as it urging the British authorities for more proactive support.

The company, which builds its cars in factories across England and Wales, lowered its profit outlook on Monday, marking the another downgrade in the current year. It now anticipates deeper losses than the earlier estimated £110 million deficit.

Requesting Government Support

The carmaker expressed frustration with the UK government, telling shareholders that despite having communicated with officials from both the UK and US, it had productive talks directly with the US administration but needed greater initiative from UK ministers.

It urged British authorities to protect the interests of niche automakers like Aston Martin, which provide numerous employment opportunities and contribute to regional finances and the wider British car industry network.

Global Trade Effects

Trump has disrupted the worldwide markets with a tariff conflict this year, significantly affecting the car sector through the introduction of a 25% tariff on April 3, on top of an existing 2.5 percent charge.

During May, the US president and Keir Starmer reached a agreement to cap duties on one hundred thousand British-made vehicles per year to 10%. This rate came into force on June 30, coinciding with the last day of the company's Q2.

Trade Deal Criticism

Nonetheless, Aston Martin criticised the trade deal, stating that the implementation of a US tariff quota mechanism introduces additional complications and limits the company's capacity to accurately forecast financial performance for the current fiscal year-end and potentially each quarter starting in 2026.

Additional Factors

The carmaker also pointed to weaker demand partly due to increased potential for logistical challenges, especially after a recent cyber incident at a leading British car producer.

The British car industry has been shaken this year by a digital breach on Jaguar Land Rover, which led to a production freeze.

Financial Response

Shares in the company, traded on the LSE, dropped by more than 11% as markets opened on Monday morning before partially rebounding to stand 7 percent lower.

Aston Martin sold 1,430 cars in its Q3, missing earlier projections of being roughly equal to the 1,641 vehicles sold in the same period the previous year.

Future Plans

Decline in demand coincides with the manufacturer gears up to release its flagship hypercar, a rear-engine hypercar costing around £743,000, which it expects will increase profits. Deliveries of the vehicle are expected to start in the final quarter of its financial year, although a projection of approximately one hundred fifty units in those final quarter was below earlier estimates, due to engineering delays.

The brand, famous for its appearances in James Bond films, has started a review of its future cost and investment strategy, which it said would likely result in lower capital investment in R&D compared with earlier forecasts of approximately £2 billion between its 2025 and 2029 financial years.

Aston Martin also told shareholders that it does not anticipate to achieve profitable cash generation for the latter six months of its current year.

UK authorities was approached for a statement.