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Aston Martin has blamed an earnings downgrade to Donald Trump's tariffs, as it calling on the UK government for greater proactive support.

The company, which builds its vehicles in Warwickshire and south Wales, lowered its earnings forecast on Monday, marking the another downgrade in the current year. The firm expects deeper losses than the earlier estimated £110 million deficit.

Seeking Government Backing

Aston Martin expressed frustration with the British leadership, informing shareholders that despite having communicated with representatives from both the UK and US, it had productive talks with the American government but needed more proactive support from British officials.

The company called on UK officials to safeguard the interests of niche automakers like Aston Martin, which create thousands of jobs and add value to regional finances and the broader UK automotive supply chain.

Global Trade Impact

The US President has disrupted the worldwide markets with a trade war this year, heavily impacting the car sector through the imposition of a 25 percent duty on April 3, in addition to an existing 2.5 percent charge.

During May, American and British leaders agreed to a agreement to cap duties on one hundred thousand British-made cars annually to 10 percent. This tariff level came into force on 30th June, aligning with the last day of Aston Martin's second financial quarter.

Agreement Criticism

However, Aston Martin expressed reservations about the bilateral agreement, arguing that the introduction of a US tariff quota mechanism introduces additional complications and restricts the group's ability to precisely predict financial performance for this financial year end and possibly quarterly from 2026 onwards.

Other Factors

Aston Martin also pointed to weaker demand partly due to greater likelihood for logistical challenges, especially following a recent cyber incident at a leading British car producer.

The British car industry has been rattled this year by a cyber-attack on Jaguar Land Rover, which prompted a manufacturing halt.

Financial Reaction

Stock in the company, listed on the LSE, fell by more than 11% as markets opened on Monday at the start of the week before recovering some ground to be 7 percent lower.

The group delivered 1,430 vehicles in its Q3, missing previous guidance of being broadly similar to the one thousand six hundred forty-one cars sold in the same period last year.

Upcoming Initiatives

The wobble in demand coincides with the manufacturer prepares to launch its flagship hypercar, a rear-engine hypercar costing around £743,000, which it expects will boost profits. Deliveries of the vehicle are expected to start in the final quarter of its fiscal year, though a projection of about 150 units in those final quarter was lower than previous expectations, reflecting engineering delays.

Aston Martin, well-known for its appearances in James Bond films, has initiated a review of its future cost and investment strategy, which it indicated would probably result in lower capital investment in R&D versus previous guidance of approximately £2 billion between its 2025 to 2029 fiscal years.

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

The government was approached for a statement.