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Aston Martin has attributed a profit warning to Donald Trump's tariffs, as it urging the British authorities for greater proactive support.

The company, producing its cars in factories across England and Wales, lowered its profit outlook on Monday, representing the second such downgrade in the current year. It now anticipates deeper losses than the previously projected £110 million deficit.

Requesting Official Backing

The carmaker voiced concerns with the British leadership, telling shareholders that despite having communicated with representatives from both the UK and US, it had productive talks directly with the US administration but required greater initiative from British officials.

It urged British authorities to protect the needs of small-volume manufacturers such as itself, which provide thousands of jobs and add value to regional finances and the wider British car industry network.

International Commerce Impact

The US President has shaken the global economy with a trade war this year, heavily impacting the automotive industry through the imposition of a 25 percent duty on April 3, on top of an existing 2.5% levy.

During May, the US president and Keir Starmer agreed to a deal to cap duties on 100,000 British-made vehicles per year to 10%. This rate took effect on June 30, coinciding with the final day of Aston Martin's Q2.

Trade Deal Criticism

Nonetheless, Aston Martin criticised the bilateral agreement, stating that the implementation of a US tariff quota mechanism adds further complexity and limits the group's capacity to accurately forecast earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Additional Challenges

The carmaker also pointed to reduced sales partially because of greater likelihood for logistical challenges, especially following a recent digital attack at a leading British car producer.

The British car industry has been shaken this year by a digital breach on Jaguar Land Rover, which prompted a manufacturing halt.

Financial Reaction

Shares in Aston Martin, traded on the London Stock Exchange, fell by more than 11% as trading opened on Monday morning before partially rebounding to stand down 7%.

Aston Martin delivered 1,430 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 equivalent quarter the previous year.

Future Plans

Decline in demand coincides with the manufacturer gears up to release its flagship hypercar, a rear-engine supercar priced at around $1 million, which it expects will increase earnings. Shipments of the car are scheduled to begin in the last quarter of its financial year, though a forecast of about 150 deliveries in those final quarter was below earlier estimates, due to engineering delays.

Aston Martin, well-known for its appearances in the 007 movie series, has initiated a evaluation of its upcoming expenditure and spending plans, which it indicated would probably lead to reduced spending in R&D versus earlier forecasts of about £2bn between its 2025 to 2029 financial years.

Aston Martin also informed investors that it does not anticipate to achieve positive free cash flow for the second half of its present fiscal year.

The government was approached for comment.