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Aston Martin has blamed a profit warning to US-imposed trade duties, as it calling on the UK government for greater active assistance.

The company, which builds its vehicles in factories across England and Wales, lowered its profit outlook on Monday, representing the second such downgrade in the current year. It now anticipates deeper losses than the previously projected £110 million deficit.

Requesting Official Support

The carmaker voiced concerns with the British leadership, informing shareholders that despite having communicated with representatives from both the UK and US, it had productive talks directly with the US administration but needed greater initiative from UK ministers.

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

Global Trade Effects

The US President has shaken the global economy with a tariff conflict this year, heavily impacting the automotive industry through the imposition of a 25% tariff on 3rd April, on top of an previous 2.5% levy.

During May, the US president and Keir Starmer agreed to a deal to limit tariffs on 100,000 British-made cars per year to 10%. This tariff level came into force on June 30, coinciding with the final day of Aston Martin's Q2.

Agreement Concerns

However, Aston Martin criticised the trade deal, stating that the introduction of a American duty quota system adds further complexity and limits the group's capacity to accurately forecast earnings for this financial year end and potentially each quarter starting in 2026.

Additional Challenges

Aston Martin also cited weaker demand partially because of increased potential for supply chain pressures, especially after a recent digital attack at a major UK automotive manufacturer.

UK automotive sector has been shaken this year by a cyber-attack on Jaguar Land Rover, which prompted a production freeze.

Financial Response

Stock in Aston Martin, traded on the LSE, fell by more than 11% as trading opened on Monday morning before partially rebounding to be 7 percent lower.

The group delivered 1,430 cars in its third quarter, missing earlier projections of being broadly similar to the 1,641 vehicles delivered in the equivalent quarter the previous year.

Future Initiatives

The wobble in demand comes as the manufacturer prepares to launch its flagship hypercar, a mid-engine supercar costing around $1 million, which it expects will boost earnings. Shipments of the vehicle are expected to start in the final quarter of its financial year, although a projection of approximately one hundred fifty deliveries in those final quarter was below previous expectations, due to engineering delays.

The brand, well-known for its appearances in James Bond films, has started a review of its upcoming expenditure and investment strategy, which it said would probably lead to lower spending in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 and 2029 financial years.

Aston Martin also told shareholders that it does not anticipate to achieve positive free cash flow for the second half of its current year.

UK authorities was approached for comment.