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Aston Martin has attributed an earnings downgrade to Donald Trump's tariffs, as it calling on the British authorities for more active assistance.

This manufacturer, which builds its cars in factories across England and Wales, revised its profit outlook on Monday, marking the second such revision this year. It now anticipates a larger loss than the earlier estimated £110 million shortfall.

Seeking Official Support

The carmaker expressed frustration with the UK government, telling shareholders that despite having engaged with officials from both the UK and US, it had productive talks directly with the American government but needed more proactive support from UK ministers.

It urged British authorities to safeguard the needs of small-volume manufacturers such as itself, which create numerous employment opportunities and contribute to local economies and the broader UK automotive supply chain.

International Commerce Impact

Trump has shaken the worldwide markets with a trade war this year, significantly affecting the car sector through the imposition of a 25 percent duty on April 3, on top of an previous 2.5% levy.

During May, American and British leaders agreed to a agreement to cap tariffs on 100,000 British-made cars annually to 10%. This tariff level came into force on June 30, coinciding with the final day of Aston Martin's Q2.

Trade Deal Concerns

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 ability to precisely predict earnings for this financial year end and potentially quarterly from 2026 onwards.

Additional Challenges

Aston Martin also cited weaker demand partly due to increased potential for supply chain pressures, particularly following a recent cyber incident at a major UK automotive manufacturer.

UK automotive sector has been shaken this year by a digital breach on the country's largest automotive employer, which led to a production freeze.

Financial Response

Stock in the company, listed on the London Stock Exchange, dropped by over 11 percent as markets opened on Monday at the start of the week before recovering some ground to stand down 7%.

The group sold 1,430 cars 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 demand comes as the manufacturer prepares to launch its flagship hypercar, a mid-engine supercar costing approximately $1 million, which it expects will boost profits. Deliveries of the vehicle are scheduled to start in the final quarter of its fiscal year, although a projection of about 150 units in those three months was lower than earlier estimates, reflecting engineering delays.

The brand, famous for its appearances in James Bond films, has initiated a evaluation of its future cost and spending plans, which it indicated would likely lead to reduced capital investment in engineering and development compared with earlier forecasts of approximately £2 billion between its 2025 to 2029 financial years.

The company also informed investors that it does not anticipate to achieve positive free cash flow for the latter six months of its present fiscal year.

UK authorities was contacted for a statement.