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Aston Martin has blamed a profit warning to Donald Trump's trade duties, while simultaneously urging the UK government for more proactive support.

This manufacturer, which builds its cars in Warwickshire and south Wales, revised its profit outlook on Monday, marking the second such downgrade in the current year. The firm expects a larger loss than the earlier estimated £110m deficit.

Seeking Official Backing

Aston Martin voiced concerns with the UK government, informing investors that despite having engaged with representatives on both sides, it had productive talks directly with the US administration but required greater initiative from British officials.

It urged British authorities to protect the interests of small-volume manufacturers like Aston Martin, which provide thousands of jobs and add value to regional finances and the wider British car industry network.

Global Trade Effects

The US President has disrupted the worldwide markets with a trade war this year, heavily impacting the automotive industry through the introduction of a 25 percent duty on April 3, in addition to an previous 2.5 percent charge.

During May, American and British leaders reached a deal to cap duties on one hundred thousand British-made vehicles annually to 10%. This rate took effect on 30th June, aligning with the last day of the company's Q2.

Agreement Concerns

Nonetheless, Aston Martin expressed reservations about the bilateral agreement, stating that the implementation of a American duty quota system adds 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

The carmaker also pointed to weaker demand partially because of greater likelihood for supply chain pressures, especially after a recent cyber incident at a major UK automotive manufacturer.

The British car industry has been rattled this year by a cyber-attack on the country's largest automotive employer, which prompted a production freeze.

Financial Reaction

Shares in Aston Martin, listed on the LSE, dropped by over 11 percent as trading opened on Monday at the start of the week before partially rebounding to stand down 7%.

The group sold one thousand four hundred thirty cars in its Q3, falling short of previous guidance of being roughly equal to the 1,641 vehicles sold in the equivalent quarter last year.

Future Initiatives

Decline in sales comes as the manufacturer gears up to release its Valhalla, a mid-engine supercar costing approximately £743,000, which it hopes will boost profits. Shipments of the vehicle are expected to start in the last quarter of its fiscal year, though a forecast of approximately one hundred fifty units in those three months was lower than earlier estimates, reflecting engineering delays.

Aston Martin, well-known for its appearances in the 007 movie series, has started a evaluation of its upcoming expenditure and investment strategy, which it indicated would likely lead to reduced capital investment in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 to 2029 fiscal years.

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

UK authorities was approached for a statement.