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Aston Martin has blamed an earnings downgrade to Donald Trump's trade duties, while simultaneously urging the UK government for more proactive support.

This manufacturer, which builds its vehicles in Warwickshire and south Wales, revised its earnings forecast on Monday, representing the second such downgrade this year. It now anticipates deeper losses than the earlier estimated £110m shortfall.

Seeking Government Support

Aston Martin expressed frustration with the British leadership, informing shareholders that while it has communicated with officials on both sides, it had positive discussions directly with the US administration but needed more proactive support from British officials.

It urged UK officials to safeguard the interests of niche automakers such as itself, which create thousands of jobs and contribute to regional finances and the wider British car industry network.

International Commerce Effects

Trump has shaken the worldwide markets with a tariff conflict this year, significantly affecting the automotive industry through the imposition of a 25% tariff on April 3, in addition to an existing 2.5% levy.

In May, the US president and Keir Starmer agreed to a deal to cap duties on one hundred thousand UK-built cars per year to 10%. This tariff level came into force on June 30, aligning with the last day of the company's second financial quarter.

Agreement Criticism

Nonetheless, the manufacturer criticised the trade deal, arguing that the implementation of a US tariff quota mechanism adds further complexity and limits the company's capacity to precisely predict earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Other Factors

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

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

Market Reaction

Shares in Aston Martin, listed on the LSE, dropped by over 11 percent as trading opened on Monday at the start of the week before partially rebounding to stand down 7%.

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 cars delivered in the equivalent quarter last year.

Upcoming Plans

Decline in demand comes as the manufacturer gears up to release its Valhalla, a mid-engine supercar costing around £743,000, which it hopes will increase profits. Shipments of the vehicle are expected to begin in the last quarter of its fiscal year, although a projection of about 150 deliveries in those final quarter was lower than earlier estimates, reflecting technical setbacks.

The brand, well-known for its roles in the 007 movie series, has started a evaluation of its future cost and spending plans, which it said would probably result in reduced capital investment in R&D versus previous guidance of approximately £2 billion between its 2025 to 2029 fiscal years.

Aston Martin also informed investors that it does not anticipate to achieve positive free cash flow for the latter six months of its current year.

The government was approached for a statement.