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Aston Martin has attributed an earnings downgrade to US-imposed tariffs, while simultaneously urging the British authorities for more active assistance.

This manufacturer, which builds its cars in factories across England and Wales, lowered its profit outlook on Monday, marking the second such revision in the current year. It now anticipates a larger loss than the previously projected £110m deficit.

Seeking Government Support

The carmaker expressed frustration with the British leadership, telling shareholders that despite having communicated with officials on both sides, it had positive discussions directly with the American government but required more proactive support from British officials.

The company called on British authorities to safeguard the interests of small-volume manufacturers like Aston Martin, which provide thousands of jobs and add value to local economies and the wider British car industry network.

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% tariff on 3rd April, on top of an existing 2.5 percent charge.

During May, American and British leaders reached a agreement to cap duties on 100,000 UK-built vehicles annually to 10 percent. This rate came into force on June 30, aligning with the final day of the company's Q2.

Trade Deal Criticism

Nonetheless, Aston Martin expressed reservations about the bilateral agreement, stating that the implementation of a American duty quota system introduces further complexity and restricts the group's capacity to accurately forecast earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Additional Factors

Aston Martin also pointed to reduced sales partly due to increased potential for logistical challenges, especially following a recent digital attack at a major UK automotive manufacturer.

UK automotive sector has been rattled this year by a digital breach on Jaguar Land Rover, which prompted a manufacturing halt.

Financial Response

Stock in Aston Martin, traded on the London Stock Exchange, fell by more than 11% as markets opened on Monday at the start of the week before partially rebounding to stand 7 percent lower.

The group sold one thousand four hundred thirty vehicles in its third quarter, falling short of previous guidance of being broadly similar to the one thousand six hundred forty-one vehicles delivered in the equivalent quarter the previous year.

Future Plans

The wobble in sales comes as the manufacturer prepares to launch its Valhalla, a mid-engine supercar costing around $1 million, which it expects will boost profits. Deliveries of the car are expected to begin in the final quarter of its fiscal year, though a projection of approximately one hundred fifty deliveries in those three months was lower than previous expectations, reflecting engineering delays.

The brand, well-known for its appearances in the 007 movie series, has started a evaluation of its upcoming expenditure and spending plans, which it said would probably lead to lower spending in engineering and development versus previous guidance of about £2bn between its 2025 and 2029 financial years.

The company also told shareholders that it no longer expects to achieve profitable cash generation for the second half of its present fiscal year.

The government was contacted for a statement.