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Aston Martin has blamed an earnings downgrade to Donald Trump's tariffs, while simultaneously calling on the British authorities for more proactive support.

This manufacturer, which builds its cars in factories across England and Wales, lowered its earnings forecast on Monday, representing the another downgrade this year. It now anticipates a larger loss than the previously projected £110 million deficit.

Requesting Official Backing

Aston Martin voiced concerns with the UK government, informing shareholders that despite having engaged with officials on both sides, it had productive talks directly with the American government but required more proactive support from British officials.

The company called on British authorities to safeguard the interests of niche automakers like Aston Martin, which provide thousands of jobs and add value to local economies and the broader UK automotive supply chain.

Global Trade Effects

Trump has disrupted the global economy with a trade war this year, significantly affecting the automotive industry through the imposition of a 25% tariff on April 3, on top of an previous 2.5 percent charge.

During May, the US president and Keir Starmer agreed to a agreement to limit duties on one hundred thousand British-made cars annually to 10%. This rate took effect on 30th June, coinciding with the final day of the company's Q2.

Trade Deal Criticism

However, Aston Martin expressed reservations about the trade deal, arguing that the introduction of a US tariff quota mechanism adds further complexity and limits the group's capacity to precisely predict earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Additional Factors

Aston Martin also pointed to weaker demand partly due to increased potential for supply chain pressures, especially following a recent digital attack at a leading British car producer.

UK automotive sector has been rattled this year by a cyber-attack on the country's largest automotive employer, which led to a production freeze.

Market Response

Stock in the company, traded on the London Stock Exchange, dropped by over 11 percent as markets opened on Monday morning before recovering some ground to stand 7 percent lower.

Aston Martin sold one thousand four hundred thirty cars in its third quarter, missing previous guidance of being broadly similar to the 1,641 vehicles delivered in the same period last year.

Future Plans

The wobble in sales coincides with the manufacturer gears up to release its flagship hypercar, a rear-engine supercar costing around $1 million, which it expects will increase profits. Deliveries of the vehicle are scheduled to start in the final quarter of its fiscal year, although a projection of about 150 deliveries in those three months was below previous expectations, reflecting engineering delays.

Aston Martin, famous for its roles in the 007 movie series, has initiated a evaluation of its upcoming expenditure and spending plans, which it indicated would likely lead to lower spending in engineering and development versus earlier forecasts of about £2bn between its 2025 and 2029 financial years.

Aston Martin also informed shareholders that it no longer expects to achieve profitable cash generation for the latter six months of its present fiscal year.

The government was approached for a statement.