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Aston Martin has attributed an earnings downgrade to US-imposed trade duties, while simultaneously calling on the UK government for more active assistance.

The company, producing its cars in factories across England and Wales, lowered its earnings forecast on Monday, marking the second such revision in the current year. It now anticipates a larger loss than the previously projected £110 million deficit.

Seeking Government Support

The carmaker voiced concerns with the British leadership, telling investors that while it has engaged with representatives from both the UK and US, it had positive discussions with the US administration but required more proactive support from UK ministers.

It urged UK officials to protect the needs of niche automakers such as itself, which create thousands of jobs and contribute to regional finances and the broader UK automotive supply chain.

International Commerce Impact

The US President has shaken the worldwide markets with a tariff conflict 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 agreed to a agreement to limit duties on one hundred thousand UK-built vehicles per year to 10 percent. This rate came into force on 30th June, aligning with the final day of the company's Q2.

Agreement Concerns

However, the manufacturer expressed reservations about the trade deal, stating that the implementation of a US tariff quota mechanism adds additional complications and restricts the company's capacity to accurately forecast earnings for this financial year end and potentially quarterly from 2026 onwards.

Additional Factors

The carmaker also pointed to weaker demand partly due to increased potential for supply chain pressures, especially following a recent digital attack at a leading British car producer.

UK automotive sector has been shaken this year by a cyber-attack on the country's largest automotive employer, which led to a manufacturing halt.

Financial Reaction

Shares in the company, listed on the LSE, dropped by over 11 percent as markets opened on Monday morning before recovering some ground to stand down 7%.

Aston Martin sold 1,430 vehicles in its Q3, falling short of earlier projections of being broadly similar to the 1,641 vehicles delivered in the same period the previous year.

Future Plans

Decline in demand comes as the manufacturer prepares to launch its Valhalla, a rear-engine hypercar costing around £743,000, which it hopes will increase profits. Deliveries of the vehicle are expected to start in the last quarter of its fiscal year, though a projection of about 150 units in those three months was below previous expectations, reflecting engineering delays.

The brand, well-known for its appearances in James Bond films, has initiated a evaluation of its upcoming expenditure and spending plans, which it said would likely lead to reduced spending in R&D versus earlier forecasts of approximately £2 billion between its 2025 to 2029 fiscal years.

The company also informed investors that it no longer expects to generate positive free cash flow for the latter six months of its present fiscal year.

UK authorities was approached for a statement.