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Aston Martin has blamed a profit warning to US-imposed tariffs, as it calling on the UK government for more proactive support.

The company, producing its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, representing the second such downgrade this year. It now anticipates deeper losses than the previously projected £110m shortfall.

Seeking Official Backing

Aston Martin voiced concerns with the UK government, telling shareholders that despite having engaged with officials on both sides, it had productive talks with the American government but needed more proactive support from UK ministers.

It urged British authorities to safeguard the interests of niche automakers like Aston Martin, which provide thousands of jobs and contribute to local economies and the wider British car industry network.

Global Trade Effects

The US President has shaken the global economy with a trade war this year, significantly affecting the car sector through the introduction of a 25% tariff on April 3, on top of an previous 2.5 percent charge.

In May, the US president and Keir Starmer reached a deal to limit tariffs on one hundred thousand UK-built cars annually to 10%. This tariff level took effect on 30th June, coinciding with the final day of the company's Q2.

Trade Deal Concerns

Nonetheless, the manufacturer criticised the bilateral agreement, arguing that the implementation of a American duty quota system adds additional complications and restricts the group's capacity to accurately forecast financial performance for the current fiscal year-end and possibly quarterly from 2026 onwards.

Other Challenges

Aston Martin also pointed to reduced sales partially because of increased potential for logistical challenges, particularly after a recent digital attack 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

Stock in the company, traded on the LSE, dropped by over 11 percent as trading opened on Monday morning before recovering some ground to stand down 7%.

Aston Martin delivered 1,430 cars in its Q3, falling short of earlier projections of being broadly similar to the one thousand six hundred forty-one cars delivered in the equivalent quarter the previous year.

Upcoming Initiatives

The wobble in sales coincides with Aston Martin gears up to release its flagship hypercar, a mid-engine supercar costing around $1 million, which it expects will boost earnings. Deliveries of the car are expected to begin in the final quarter of its financial year, though a projection of approximately one hundred fifty deliveries in those three months was below previous expectations, reflecting engineering delays.

The brand, well-known for its appearances in the 007 movie series, has initiated a review of its upcoming expenditure and investment strategy, which it indicated would probably lead to reduced capital investment in engineering and development compared with previous guidance of about £2bn between its 2025 to 2029 financial years.

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

UK authorities was contacted for a statement.