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Aston Martin has attributed an earnings downgrade to US-imposed tariffs, as it calling on the British authorities for greater proactive support.

The company, which builds its cars in Warwickshire and south Wales, lowered its earnings forecast on Monday, representing the another downgrade in the current year. The firm expects a larger loss than the earlier estimated £110m deficit.

Requesting Government Support

Aston Martin expressed frustration with the British leadership, informing shareholders that despite having communicated with officials on both sides, it had productive talks with the US administration but needed greater initiative from British officials.

The company called on UK officials to safeguard the needs of niche automakers such as itself, which provide thousands of jobs and contribute to regional finances and the broader UK automotive supply chain.

International Commerce Effects

Trump has disrupted the global economy with a trade war this year, heavily impacting the car sector through the introduction of a 25 percent duty on April 3, in addition to an existing 2.5% levy.

In May, the US president and Keir Starmer reached a agreement to limit duties on 100,000 British-made cars per year to 10%. This rate took effect on June 30, coinciding with the final day of the company's Q2.

Agreement Concerns

However, Aston Martin expressed reservations about the bilateral agreement, stating that the implementation of a American duty quota system adds additional complications and restricts the company's ability to accurately forecast earnings for this financial year end and possibly each quarter starting in 2026.

Other Factors

Aston Martin also pointed to reduced sales partially because of greater likelihood for logistical challenges, particularly 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.

Financial Reaction

Stock in Aston Martin, traded on the LSE, fell by more than 11% as markets opened on Monday at the start of the week before recovering some ground to be 7 percent lower.

The group sold one thousand four hundred thirty vehicles in its third quarter, falling short of earlier projections of being broadly similar to the one thousand six hundred forty-one vehicles delivered in the same period last year.

Upcoming Initiatives

The wobble in sales coincides with Aston Martin gears up to release its flagship hypercar, a rear-engine supercar costing around £743,000, which it hopes will increase profits. Deliveries of the vehicle are expected to begin in the last quarter of its fiscal year, although a projection of about 150 units in those three months was lower than earlier estimates, due to engineering delays.

The brand, well-known for its appearances in the 007 movie series, has initiated a evaluation of its future cost and spending plans, which it said would likely lead to lower spending in engineering and development versus earlier forecasts of about £2bn between its 2025 and 2029 fiscal years.

Aston Martin also informed investors that it does not anticipate to generate profitable cash generation for the latter six months of its present fiscal year.

The government was contacted for a statement.