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Aston Martin has attributed a profit warning to Donald Trump's tariffs, as it urging the UK government for greater active assistance.

The company, which builds its cars in factories across England and Wales, revised its profit outlook on Monday, representing the second such downgrade in the current year. The firm expects deeper losses than the earlier estimated £110m deficit.

Seeking Government Backing

Aston Martin expressed frustration with the British leadership, informing shareholders that while it has engaged with representatives on both sides, it had productive talks directly with the US administration but needed more proactive support from UK ministers.

It urged British authorities to protect the interests of small-volume manufacturers such as itself, which provide thousands of jobs and contribute to regional finances and the wider British car industry network.

Global Trade Impact

Trump has disrupted the global economy with a tariff conflict this year, significantly affecting the automotive industry through the imposition of a 25 percent duty on 3rd April, on top of an previous 2.5% levy.

In May, American and British leaders agreed to a agreement to cap duties on one hundred thousand British-made cars per year to 10 percent. This rate came into force on June 30, coinciding with the final day of the company's Q2.

Trade Deal Criticism

However, the manufacturer criticised the trade deal, arguing 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 possibly each quarter starting in 2026.

Additional Factors

Aston Martin also pointed to weaker demand partially because of greater likelihood for logistical challenges, particularly after a recent cyber incident at a major UK automotive manufacturer.

The British car industry has been rattled this year by a digital breach on the country's largest automotive employer, which led to a manufacturing halt.

Financial Reaction

Stock in the company, listed on the London Stock Exchange, fell by more than 11% as trading opened on Monday morning before recovering some ground to stand 7 percent lower.

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

Upcoming Initiatives

The wobble in sales coincides with the manufacturer prepares to launch its flagship hypercar, a rear-engine hypercar costing around £743,000, which it expects will boost profits. Deliveries of the car are expected to start in the final quarter of its fiscal year, though a projection of about 150 units in those final quarter was below previous expectations, due to technical setbacks.

The brand, famous for its appearances in the 007 movie series, has initiated a review of its future cost and investment strategy, which it said would likely result in lower spending in R&D versus earlier forecasts of about £2bn between its 2025 to 2029 financial years.

The company also informed shareholders that it does not anticipate to generate positive free cash flow for the second half of its present fiscal year.

UK authorities was contacted for comment.