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Aston Martin has attributed an earnings downgrade to Donald Trump's trade duties, while simultaneously urging the UK government for greater active assistance.

This manufacturer, which builds its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, marking the another revision this year. The firm expects a larger loss than the previously projected £110m shortfall.

Requesting Government Backing

Aston Martin expressed frustration with the UK government, informing investors that despite having communicated with officials from both the UK and US, it had positive discussions with the US administration but required greater initiative from UK ministers.

It urged British authorities to protect the needs of small-volume manufacturers such as itself, which create thousands of jobs and add value to local economies and the broader UK automotive supply chain.

International Commerce Effects

Trump has disrupted the global economy with a trade war this year, heavily impacting the automotive industry through the imposition of a 25% tariff 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 British-made cars annually to 10 percent. This tariff level took effect on 30th June, aligning with the last day of the company's second financial quarter.

Trade Deal Concerns

However, Aston Martin criticised the bilateral agreement, stating that the introduction of a American duty quota system introduces additional complications and restricts the company's ability to accurately forecast financial performance for the current fiscal year-end and possibly each quarter starting in 2026.

Other Challenges

The carmaker also pointed to reduced sales partly due to greater likelihood for logistical challenges, especially following a recent digital attack at a leading British car producer.

UK automotive sector has been shaken this year by a digital breach on Jaguar Land Rover, which led to a production freeze.

Financial Response

Stock in Aston Martin, traded on the LSE, fell by more than 11% as trading opened on Monday morning before recovering some ground to be 7 percent lower.

The group sold 1,430 cars in its third quarter, falling short of previous guidance of being roughly equal to the 1,641 vehicles sold in the equivalent quarter the previous year.

Future Initiatives

The wobble in demand coincides with Aston Martin gears up to release its Valhalla, a rear-engine hypercar costing approximately £743,000, which it hopes will increase earnings. Shipments of the vehicle are expected to start in the final quarter of its fiscal year, though a projection of about 150 units in those three months was below earlier estimates, reflecting engineering delays.

The brand, famous for its roles in the 007 movie series, has started a review of its upcoming expenditure and spending plans, which it indicated would likely lead to reduced capital investment in engineering and development versus previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years.

Aston Martin also informed shareholders that it no longer expects to achieve positive free cash flow for the latter six months of its current year.

UK authorities was contacted for comment.