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Aston Martin has attributed a profit warning to US-imposed tariffs, as it calling on the British authorities for greater proactive support.

This manufacturer, producing its cars in factories across England and Wales, revised its profit outlook on Monday, marking the another downgrade this year. The firm expects a larger loss than the earlier estimated £110m shortfall.

Requesting Government Support

Aston Martin expressed frustration with the British leadership, informing investors that despite having communicated with representatives on both sides, it had positive discussions directly with the American government but required more proactive support from British officials.

It urged British authorities to safeguard the interests of niche automakers such as itself, which create numerous employment opportunities and contribute to regional finances and the wider British car industry network.

International Commerce Effects

The US President has disrupted the worldwide markets with a trade war this year, significantly affecting the automotive industry through the imposition of a 25% tariff on April 3, on top of an existing 2.5% levy.

During May, American and British leaders agreed to a agreement to cap tariffs on 100,000 British-made cars annually to 10%. This tariff level came into force on 30th June, coinciding with the final day of the company's Q2.

Trade Deal Concerns

However, Aston Martin criticised the trade deal, arguing that the introduction of a US tariff quota mechanism adds further complexity and restricts the company's ability to precisely predict financial performance for the current fiscal year-end and potentially quarterly from 2026 onwards.

Additional Factors

Aston Martin also cited reduced sales partially because of greater likelihood for supply chain pressures, especially following a recent digital attack at a major UK automotive manufacturer.

The British car industry has been shaken this year by a cyber-attack on Jaguar Land Rover, which led to a production freeze.

Financial Reaction

Stock in Aston Martin, listed on the LSE, dropped by more than 11% as trading opened on Monday morning before partially rebounding to stand down 7%.

The group delivered one thousand four hundred thirty vehicles in its Q3, missing earlier projections of being broadly similar to the one thousand six hundred forty-one cars sold in the equivalent quarter the previous year.

Future Initiatives

The wobble in demand comes as Aston Martin gears up to release its Valhalla, a mid-engine supercar costing around $1 million, which it expects will increase earnings. Deliveries of the car are expected to begin in the final quarter of its fiscal year, although a forecast of approximately one hundred fifty deliveries in those final quarter was lower than previous expectations, reflecting engineering delays.

Aston Martin, famous for its roles in the 007 movie series, has started a review of its future cost and investment strategy, which it said would likely result in reduced spending in engineering and development versus previous guidance of approximately £2 billion between its 2025 to 2029 financial years.

The company also informed shareholders that it does not anticipate to achieve profitable cash generation for the latter six months of its present fiscal year.

The government was approached for a statement.