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The automaker has attributed an earnings downgrade to Donald Trump's trade duties, as it calling on the UK government for greater proactive support.

This manufacturer, producing its cars in factories across England and Wales, lowered its earnings forecast on Monday, representing the second such downgrade this year. It now anticipates a larger loss than the previously projected £110m shortfall.

Requesting Government Backing

Aston Martin voiced concerns with the British leadership, telling shareholders that despite having communicated with officials on both sides, it had productive talks directly with the American government but needed greater initiative from UK ministers.

The company called on UK officials to safeguard the interests of niche automakers such as itself, which provide numerous employment opportunities and add value to regional finances and the wider British car industry network.

Global Trade Impact

The US President has shaken the worldwide markets with a tariff conflict this year, significantly affecting the automotive industry through the introduction of a 25% tariff on 3rd April, in addition to an previous 2.5 percent charge.

In May, American and British leaders reached a deal to cap tariffs on 100,000 British-made vehicles per year to 10 percent. This tariff level took effect on 30th June, aligning with the final day of the company's Q2.

Trade Deal Criticism

Nonetheless, the manufacturer expressed reservations about the bilateral agreement, stating that the implementation of a US tariff quota mechanism adds further complexity and limits the group's ability to precisely predict financial performance for this financial year end and possibly quarterly from 2026 onwards.

Additional Factors

The carmaker also cited reduced sales partially because of greater likelihood for supply chain pressures, particularly after a recent digital attack at a leading British car producer.

The British car industry has been rattled this year by a digital breach on the country's largest automotive employer, which led to a manufacturing halt.

Financial Reaction

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

Aston Martin delivered one thousand four hundred thirty vehicles in its Q3, missing previous guidance of being roughly equal to the 1,641 vehicles sold in the equivalent quarter the previous year.

Future Initiatives

Decline in demand comes as the manufacturer prepares to launch its Valhalla, a mid-engine hypercar costing approximately $1 million, which it expects will increase earnings. Deliveries of the vehicle are scheduled 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 previous expectations, due to technical setbacks.

The brand, well-known for its appearances in James Bond films, has initiated a evaluation of its upcoming expenditure and investment strategy, which it said would probably lead to lower capital investment in R&D compared with previous guidance of about £2bn between its 2025 and 2029 financial years.

The company also informed shareholders that it no longer expects to generate positive free cash flow for the latter six months of its present fiscal year.

The government was contacted for comment.