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Aston Martin has attributed a profit warning to US-imposed tariffs, as it urging the UK government for more active assistance.

The company, producing its vehicles in Warwickshire and south Wales, revised its profit outlook on Monday, representing the second such downgrade in the current year. It now anticipates deeper losses than the earlier estimated £110m deficit.

Requesting Government Support

The carmaker expressed frustration with the British leadership, informing shareholders that while it has communicated with officials 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 safeguard the needs of niche automakers like Aston Martin, which create numerous employment opportunities and contribute to local economies and the broader UK automotive supply chain.

International Commerce Effects

Trump has disrupted the worldwide markets with a trade war this year, heavily impacting the automotive industry through the imposition of a 25 percent duty on April 3, in addition to an existing 2.5 percent charge.

In May, American and British leaders reached a deal to limit tariffs on 100,000 British-made vehicles annually to 10 percent. This tariff level took effect on 30th June, aligning with the final day of Aston Martin's Q2.

Trade Deal Criticism

However, Aston Martin expressed reservations about the trade deal, stating that the introduction of a US tariff quota mechanism introduces additional complications and limits the company's ability to accurately forecast earnings for this financial year end and potentially each quarter starting in 2026.

Additional Challenges

Aston Martin also cited weaker demand partially because of increased potential for supply chain pressures, particularly following a recent digital attack at a leading British car producer.

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

Market Response

Shares in Aston Martin, traded on the London Stock Exchange, dropped by more than 11% as markets opened on Monday at the start of the week before recovering some ground to be down 7%.

Aston Martin sold 1,430 vehicles in its Q3, falling short of earlier projections of being roughly equal to the 1,641 cars delivered in the equivalent quarter last year.

Future Plans

The wobble in sales coincides with Aston Martin prepares to launch its Valhalla, a mid-engine supercar priced at around $1 million, which it expects will boost earnings. Shipments of the car are expected to start in the final quarter of its financial year, though a forecast of approximately one hundred fifty units in those final quarter was lower than earlier estimates, reflecting engineering delays.

The brand, famous for its roles in James Bond films, has initiated a evaluation of its upcoming expenditure and spending plans, which it said would likely result in lower capital investment in R&D compared with previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years.

Aston Martin also informed shareholders that it does not anticipate to achieve positive free cash flow for the latter six months of its current year.

UK authorities was contacted for a statement.