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Aston Martin has attributed an earnings downgrade to Donald Trump's tariffs, as it calling on the UK government for more active assistance.

The company, producing its cars in Warwickshire and south Wales, lowered its earnings forecast on Monday, representing the second such revision in the current year. The firm expects a larger loss than the earlier estimated £110 million deficit.

Seeking Government Backing

The carmaker voiced concerns with the British leadership, informing shareholders that despite having communicated with representatives on both sides, it had productive talks directly with the American government but required more proactive support from British officials.

It urged British authorities to protect the needs of niche automakers like Aston Martin, which create thousands of jobs and add value to regional finances and the broader UK automotive supply chain.

Global Trade Effects

The US President has disrupted the worldwide markets with a trade war this year, significantly affecting the automotive industry through the introduction of a 25 percent duty on 3rd April, in addition to an existing 2.5% levy.

In May, the US president and Keir Starmer agreed to a agreement to cap tariffs on one hundred thousand UK-built cars annually to 10 percent. This tariff level came into force on 30th June, aligning with the last day of the company's second financial quarter.

Agreement Concerns

Nonetheless, the manufacturer criticised the trade deal, arguing that the introduction of a American duty quota system introduces further complexity and restricts the group's ability to accurately forecast financial performance for the current fiscal year-end and potentially each quarter starting in 2026.

Other Challenges

The carmaker also cited reduced sales partially because of greater likelihood for logistical challenges, particularly following a recent cyber incident at a major UK automotive manufacturer.

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

Financial Response

Shares in the company, traded on the LSE, dropped by over 11 percent as markets opened on Monday at the start of the week before partially rebounding to be 7 percent lower.

Aston Martin delivered one thousand four hundred thirty cars in its third quarter, falling short of earlier projections of being roughly equal to the 1,641 vehicles sold in the same period the previous year.

Future Initiatives

The wobble in demand comes as Aston Martin prepares to launch its flagship hypercar, a rear-engine hypercar costing around £743,000, which it hopes will boost profits. Shipments of the car are scheduled to begin in the last quarter of its financial year, although a forecast of about 150 units in those final quarter was lower than earlier estimates, reflecting engineering delays.

Aston Martin, famous for its appearances in James Bond films, has started a review of its future cost and spending plans, which it indicated would probably lead to lower spending in R&D compared with previous guidance of about £2bn between its 2025 and 2029 fiscal years.

Aston Martin also informed shareholders that it no longer expects to generate profitable cash generation for the second half of its present fiscal year.

UK authorities was contacted for a statement.