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

The company, producing its cars in Warwickshire and south Wales, revised its profit outlook on Monday, marking the another downgrade in the current year. It now anticipates deeper losses than the earlier estimated £110 million deficit.

Seeking Government Support

Aston Martin expressed frustration with the UK government, telling shareholders that while it has engaged with officials on both sides, it had positive discussions with the American government but needed more proactive support from British officials.

The company called on UK officials to protect the interests of small-volume manufacturers like Aston Martin, which provide numerous employment opportunities and add value to local economies and the broader UK automotive supply chain.

Global Trade Effects

Trump has disrupted the global economy with a tariff conflict this year, heavily impacting the car sector through the introduction of a 25 percent duty on 3rd April, in addition to an existing 2.5% levy.

In May, American and British leaders agreed to a agreement to limit tariffs on 100,000 UK-built vehicles per year to 10%. This rate took effect on June 30, aligning with the final day of the company's second financial quarter.

Agreement Criticism

However, the manufacturer expressed reservations about the bilateral agreement, stating that the introduction of a US tariff quota mechanism introduces additional complications and restricts the group's capacity to accurately forecast financial performance for this financial year end and potentially quarterly from 2026 onwards.

Other Challenges

Aston Martin also pointed to reduced sales partially because of greater likelihood for supply chain pressures, especially 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 manufacturing halt.

Market Response

Shares in the company, listed on the LSE, fell by more than 11% as markets opened on Monday morning before recovering some ground to be 7 percent lower.

The group sold one thousand four hundred thirty vehicles in its third quarter, falling short of previous guidance of being roughly equal to the one thousand six hundred forty-one cars sold in the equivalent quarter the previous year.

Upcoming Plans

Decline in demand comes as Aston Martin gears up to release its flagship hypercar, a rear-engine hypercar costing around £743,000, which it hopes will boost profits. Deliveries of the car are expected to begin in the last quarter of its fiscal year, though a forecast of approximately one hundred fifty units in those three months was below previous expectations, due to technical setbacks.

The brand, famous for its roles in James Bond films, has initiated a evaluation of its upcoming expenditure and investment strategy, which it said would likely lead to reduced spending 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 does not anticipate to achieve profitable cash generation for the latter six months of its current year.

The government was contacted for comment.