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Aston Martin has blamed an earnings downgrade to US-imposed trade duties, as it 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, marking the another downgrade in the current year. It now anticipates a larger loss than the earlier estimated £110m shortfall.

Seeking Government Support

Aston Martin voiced concerns with the British leadership, telling investors that despite having engaged with representatives from both the UK and US, it had productive talks directly with the American government but required greater initiative from British officials.

The company called on British authorities to safeguard the interests of niche automakers such as itself, which create thousands of jobs and add value 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, significantly affecting the automotive industry through the imposition of a 25% tariff on 3rd April, in addition to an previous 2.5% levy.

In May, American and British leaders reached a agreement to cap duties on one hundred thousand British-made cars annually to 10 percent. This tariff level came into force on June 30, coinciding with the final day of the company's Q2.

Agreement Criticism

However, Aston Martin expressed reservations about the bilateral agreement, stating that the implementation of a US tariff quota mechanism adds additional complications and restricts the group's ability to precisely predict earnings for this financial year end and potentially quarterly from 2026 onwards.

Other Factors

Aston Martin also pointed to weaker demand partly due to greater likelihood for supply chain pressures, especially after a recent cyber incident at a major UK automotive manufacturer.

UK automotive sector has been rattled this year by a digital breach on Jaguar Land Rover, which prompted a manufacturing halt.

Financial Reaction

Shares in the company, traded on the LSE, fell by over 11 percent as markets opened on Monday at the start of the week before recovering some ground to be 7 percent lower.

The group delivered one thousand four hundred thirty cars in its third quarter, falling short of earlier projections of being broadly similar to the 1,641 cars delivered in the equivalent quarter last year.

Upcoming Plans

Decline in demand comes as Aston Martin gears up to release its Valhalla, a mid-engine hypercar priced at approximately £743,000, which it expects will increase earnings. Deliveries of the vehicle are scheduled to begin in the final quarter of its financial year, though a forecast of about 150 units in those final quarter was lower than previous expectations, reflecting engineering delays.

The brand, famous for its appearances in James Bond films, has initiated a review of its future cost and investment strategy, which it indicated would likely result in reduced capital investment in engineering and development versus previous guidance of about £2bn between its 2025 to 2029 fiscal years.

The company also told shareholders that it no longer expects to achieve positive free cash flow for the second half of its present fiscal year.

UK authorities was approached for comment.