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

The company, producing its cars in factories across England and Wales, revised its earnings forecast on Monday, representing the second such revision in the current year. The firm expects deeper losses than the earlier estimated £110m deficit.

Seeking Official Backing

Aston Martin expressed frustration with the UK government, telling investors that while it has engaged with officials from both the UK and US, it had productive talks directly with the American government but needed greater initiative from UK ministers.

It urged UK officials to safeguard the needs of niche automakers such as itself, which create numerous employment opportunities and add value to regional finances and the broader UK automotive supply chain.

International Commerce Impact

The US President has disrupted the worldwide markets with a tariff conflict this year, significantly affecting the automotive industry through the imposition of a 25 percent duty on April 3, in addition to an previous 2.5% levy.

During May, the US president and Keir Starmer reached a deal to limit duties on 100,000 UK-built cars annually to 10%. This rate came into force on June 30, aligning with the final day of the company's Q2.

Trade Deal Concerns

However, the manufacturer criticised the trade deal, stating that the implementation of a American duty quota system adds additional complications and limits the group's capacity to precisely predict earnings for the current fiscal year-end and potentially quarterly from 2026 onwards.

Additional Factors

The carmaker also pointed to weaker demand partially because of increased potential for supply chain pressures, particularly after a recent digital attack at a leading British car producer.

The British car industry has been rattled this year by a cyber-attack on Jaguar Land Rover, which prompted a production freeze.

Market Response

Stock in Aston Martin, listed on the London Stock Exchange, dropped by over 11 percent as markets opened on Monday morning before recovering some ground to stand 7 percent lower.

The group delivered one thousand four hundred thirty vehicles in its Q3, falling short of earlier projections of being roughly equal to the one thousand six hundred forty-one cars sold in the equivalent quarter last year.

Upcoming Plans

Decline in demand comes as Aston Martin gears up to release its flagship hypercar, a mid-engine supercar priced at around $1 million, which it hopes will increase profits. Deliveries of the car are expected to begin in the final quarter of its financial year, although a projection of about 150 deliveries in those final quarter was lower than earlier estimates, due to engineering delays.

Aston Martin, famous for its roles in James Bond films, has started a evaluation of its upcoming expenditure and investment strategy, which it said would probably lead to reduced capital investment in engineering and development compared with earlier forecasts of about £2bn between its 2025 to 2029 fiscal years.

Aston Martin also told shareholders that it does not anticipate to achieve profitable cash generation for the latter six months of its current year.

The government was contacted for a statement.