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Aston Martin has blamed a profit warning to Donald Trump's trade duties, while simultaneously calling on the UK government for greater proactive support.

The company, which builds its cars in factories across England and Wales, revised its earnings forecast on Monday, marking the another downgrade this year. The firm expects a larger loss than the previously projected £110 million deficit.

Requesting Government Backing

The carmaker expressed frustration with the UK government, telling shareholders that while it has communicated with officials from both the UK and US, it had positive discussions directly with the American government but needed greater initiative from UK ministers.

It urged British authorities to safeguard the interests of niche automakers such as itself, which create thousands of jobs and contribute to local economies and the broader UK automotive supply chain.

International Commerce Effects

Trump has shaken the worldwide markets with a tariff conflict this year, significantly affecting the car sector through the introduction of a 25% tariff on April 3, on top of an existing 2.5 percent charge.

During May, American and British leaders agreed to a deal to cap tariffs on one hundred thousand UK-built vehicles per year to 10 percent. This rate came into force on 30th June, coinciding with the final day of the company's second financial quarter.

Agreement Concerns

However, Aston Martin criticised the trade deal, arguing that the introduction of a American duty quota system introduces further complexity and limits the group's ability to precisely predict earnings for the current fiscal year-end and potentially quarterly from 2026 onwards.

Additional Factors

Aston Martin also pointed to reduced sales partly due to greater likelihood for supply chain pressures, particularly following a recent digital attack at a leading British car producer.

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

Market Reaction

Stock in the company, traded on the London Stock Exchange, fell by over 11 percent as trading opened on Monday at the start of the week before recovering some ground to stand 7 percent lower.

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

Future Plans

The wobble in sales comes as Aston Martin gears up to release its flagship hypercar, a mid-engine hypercar priced at around £743,000, which it expects will boost earnings. Deliveries of the car are scheduled to begin in the final quarter of its fiscal year, although a projection of about 150 deliveries in those final quarter was lower than earlier estimates, due to technical setbacks.

The brand, well-known for its appearances in James Bond films, has initiated a evaluation of its future cost and investment strategy, which it said would probably lead to reduced spending in R&D versus earlier forecasts of approximately £2 billion between its 2025 to 2029 financial years.

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

The government was approached for comment.