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Aston Martin has blamed an earnings downgrade to US-imposed tariffs, while simultaneously urging the UK government for greater active assistance.

The company, producing its cars in Warwickshire and south Wales, revised its earnings forecast on Monday, marking the second such downgrade this year. The firm expects deeper losses than the previously projected £110 million shortfall.

Requesting Official Backing

The carmaker voiced concerns with the British leadership, telling shareholders that while it has engaged with officials from both the UK and US, it had positive discussions directly with the American government but required more proactive support from British officials.

It urged UK officials to safeguard the interests of small-volume manufacturers such as itself, which provide thousands of jobs and contribute to regional finances and the broader UK automotive supply chain.

International Commerce Impact

Trump has disrupted the worldwide markets with a tariff conflict this year, heavily impacting the car sector through the introduction of a 25% tariff on April 3, in addition to 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 annually to 10%. This rate came into force on June 30, aligning with the last day of Aston Martin's Q2.

Trade Deal Concerns

Nonetheless, the manufacturer criticised the trade deal, stating that the implementation of a American duty quota system adds further complexity and limits the company's ability to precisely predict financial performance for this financial year end and potentially quarterly from 2026 onwards.

Additional Challenges

The carmaker also cited weaker demand partly due to greater likelihood for supply chain pressures, especially following a recent cyber incident at a leading British car producer.

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

Market Reaction

Stock in Aston Martin, listed on the London Stock Exchange, fell by over 11 percent as markets opened on Monday morning before recovering some ground to be 7 percent lower.

The group sold one thousand four hundred thirty vehicles in its Q3, missing previous guidance of being roughly equal to the one thousand six hundred forty-one vehicles delivered in the equivalent quarter the previous year.

Future Initiatives

Decline in demand coincides with Aston Martin prepares to launch its flagship hypercar, a rear-engine hypercar costing approximately $1 million, which it hopes will boost profits. Shipments of the vehicle are scheduled to begin in the final quarter of its fiscal year, though a projection of approximately one hundred fifty units in those three months was lower than previous expectations, due to technical setbacks.

The brand, well-known for its appearances in the 007 movie series, has started a review of its future cost and spending plans, which it said would probably result in lower spending in R&D versus earlier forecasts of about £2bn between its 2025 and 2029 fiscal years.

Aston Martin also told shareholders that it no longer expects to generate profitable cash generation for the second half of its present fiscal year.

The government was approached for comment.