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

The company, which builds its vehicles in factories across England and Wales, lowered its profit outlook on Monday, representing the second such downgrade in the current year. It now anticipates deeper losses than the earlier estimated £110 million shortfall.

Seeking Government Support

Aston Martin expressed frustration with the UK government, informing investors that despite having communicated with officials on both sides, it had positive discussions directly with the US administration but required more proactive support from UK ministers.

It urged British authorities to protect the interests of niche automakers such as itself, which create thousands of jobs and contribute to regional finances and the broader UK automotive supply chain.

Global Trade Effects

Trump has shaken the worldwide markets with a trade war this year, significantly affecting the automotive industry through the introduction of a 25 percent duty on April 3, on top of an existing 2.5 percent charge.

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

Agreement Criticism

Nonetheless, Aston Martin expressed reservations about the bilateral agreement, stating that the introduction of a US tariff quota mechanism adds additional complications and limits the company's ability to precisely predict financial performance for the current fiscal year-end and potentially each quarter starting in 2026.

Other Factors

Aston Martin also cited weaker demand partly due to increased potential for logistical challenges, particularly after a recent digital attack at a leading British car producer.

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

Market Reaction

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

Aston Martin sold 1,430 vehicles in its third quarter, missing earlier projections of being roughly equal to the 1,641 vehicles sold in the equivalent quarter last year.

Future Plans

Decline in sales comes as Aston Martin gears up to release its flagship hypercar, a mid-engine supercar priced at around $1 million, which it hopes will increase profits. Deliveries of the car are scheduled to begin in the last quarter of its fiscal year, although a forecast of about 150 units in those final quarter was lower than previous expectations, due to technical setbacks.

Aston Martin, famous for its appearances in James Bond films, has started a review of its future cost and investment strategy, which it indicated would probably result in reduced capital investment in engineering and development compared with earlier forecasts of about £2bn between its 2025 to 2029 fiscal years.

Aston Martin also told investors that it no longer expects to achieve positive free cash flow for the second half of its current year.

The government was approached for a statement.