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Aston Martin has attributed an earnings downgrade to Donald Trump's trade duties, as it calling on the UK government for more active assistance.

The company, producing its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, marking the second such downgrade in the current year. It now anticipates deeper losses than the previously projected £110 million shortfall.

Requesting Government Support

The carmaker expressed frustration with the UK government, telling investors that while it has engaged with representatives from both the UK and US, it had productive talks with the American government but needed more proactive support from British officials.

It urged British authorities to protect the needs of small-volume manufacturers such as itself, which create thousands of jobs and add value to regional finances and the wider British car industry network.

Global Trade Effects

Trump has disrupted the worldwide markets with a trade war this year, significantly affecting the car sector through the imposition of a 25% tariff on 3rd April, in addition to an previous 2.5 percent charge.

During May, the US president and Keir Starmer reached a deal to cap duties on one hundred thousand UK-built vehicles per year to 10%. This rate came into force on 30th June, coinciding with the last day of Aston Martin's second financial quarter.

Agreement Criticism

Nonetheless, the manufacturer criticised the bilateral agreement, arguing that the implementation of a American duty quota system introduces additional complications and restricts the company's ability to precisely predict financial performance for the current fiscal year-end and potentially each quarter starting in 2026.

Other Factors

Aston Martin also cited reduced sales partially because of increased potential for logistical challenges, especially after a recent cyber incident at a leading British car producer.

UK automotive sector has been rattled this year by a digital breach on the country's largest automotive employer, which prompted a manufacturing halt.

Financial Reaction

Stock in Aston Martin, listed on the LSE, fell by more than 11% as markets opened on Monday at the start of the week before partially rebounding to be down 7%.

Aston Martin delivered one thousand four hundred thirty cars in its third quarter, falling short of earlier projections of being roughly equal to the 1,641 vehicles delivered in the same period last year.

Future Initiatives

Decline in demand comes as Aston Martin gears up to release its flagship hypercar, a rear-engine supercar costing approximately $1 million, which it expects will boost earnings. Deliveries of the car are scheduled to start in the last quarter of its fiscal year, though a forecast of about 150 deliveries in those final quarter was below previous expectations, reflecting engineering delays.

The brand, famous for its appearances in the 007 movie series, has initiated a evaluation of its future cost and investment strategy, which it indicated would likely lead to lower spending in engineering and development versus earlier forecasts of about £2bn between its 2025 to 2029 financial years.

Aston Martin also informed investors that it does not anticipate to achieve positive free cash flow for the latter six months of its current year.

The government was contacted for comment.