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

This manufacturer, producing its vehicles in factories across England and Wales, lowered its earnings forecast on Monday, representing the second such revision this year. It now anticipates deeper losses than the earlier estimated £110m shortfall.

Seeking Government Support

The carmaker voiced concerns with the British leadership, telling shareholders that while it has engaged with representatives on both sides, it had productive talks with the US administration but needed greater initiative from British officials.

The company called on UK officials to protect the needs of niche automakers like Aston Martin, which create numerous employment opportunities and add value to local economies and the broader UK automotive supply chain.

Global Trade Impact

Trump has disrupted the global economy with a trade war this year, heavily impacting the car sector through the imposition of a 25 percent duty on April 3, on top of an existing 2.5% levy.

During May, American and British leaders reached a agreement to limit duties on 100,000 UK-built vehicles per year to 10%. This tariff level took effect on June 30, aligning with the final day of Aston Martin's second financial quarter.

Agreement Criticism

Nonetheless, the manufacturer criticised the trade deal, stating that the implementation of a US tariff quota mechanism introduces additional complications and restricts the group's capacity to precisely predict earnings for this financial year end and potentially quarterly from 2026 onwards.

Other Challenges

Aston Martin also pointed to reduced sales partly due to increased potential for supply chain pressures, especially following a recent digital attack at a major UK automotive manufacturer.

The British car industry has been shaken this year by a digital breach on Jaguar Land Rover, which prompted a manufacturing halt.

Financial Reaction

Stock in the company, traded on the LSE, dropped by more than 11% as trading opened on Monday at the start of the week before recovering some ground to be 7 percent lower.

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

Future Plans

The wobble in demand comes as Aston Martin gears up to release its Valhalla, 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 financial year, though a forecast of about 150 deliveries in those three months was lower than previous expectations, due to technical setbacks.

Aston Martin, famous for its appearances in the 007 movie series, has initiated a review of its upcoming expenditure and spending plans, which it said would likely result in reduced spending in R&D versus previous guidance of about £2bn between its 2025 and 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 comment.