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Aston Martin has blamed an earnings downgrade to Donald Trump's trade duties, as it calling on the British authorities for greater proactive support.

The company, producing its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, marking the second such downgrade in the current year. The firm expects a larger loss than the previously projected £110 million shortfall.

Seeking Official Support

Aston Martin expressed frustration with the British leadership, informing shareholders that despite having engaged with representatives from both the UK and US, it had positive discussions with the US administration but needed more proactive support from UK ministers.

The company called on UK officials to safeguard the needs of niche automakers such as itself, which provide thousands of jobs and add value to regional finances and the wider British car industry network.

Global Trade Effects

Trump has shaken the global economy with a trade war this year, heavily impacting the car sector through the imposition of a 25 percent duty on April 3, on top of an previous 2.5% levy.

In May, American and British leaders reached a agreement to limit tariffs on 100,000 British-made vehicles annually to 10 percent. This tariff level took effect on June 30, coinciding with the final day of Aston Martin's Q2.

Trade Deal Criticism

Nonetheless, the manufacturer criticised the bilateral agreement, arguing that the implementation of a American duty quota system introduces further complexity and limits the company's ability to accurately forecast financial performance for this financial year end and possibly quarterly from 2026 onwards.

Other Challenges

Aston Martin also pointed to weaker demand partially because of increased potential for supply chain pressures, particularly following a recent cyber incident at a major UK automotive manufacturer.

The British car industry has been rattled this year by a digital breach on Jaguar Land Rover, which led to a production freeze.

Market Reaction

Stock in Aston Martin, traded on the LSE, fell by more than 11% as trading opened on Monday at the start of the week before recovering some ground to be 7 percent lower.

Aston Martin sold 1,430 cars in its Q3, missing previous guidance of being broadly similar to the 1,641 cars delivered in the equivalent quarter the previous year.

Future Initiatives

The wobble in demand comes as the manufacturer prepares to launch its flagship hypercar, a rear-engine supercar costing approximately £743,000, which it hopes will boost earnings. Shipments of the car are scheduled to begin in the last quarter of its fiscal year, though a projection of approximately one hundred fifty deliveries in those final quarter was below previous expectations, reflecting engineering delays.

The brand, famous for its roles in the 007 movie series, has initiated a evaluation of its upcoming expenditure and investment strategy, which it said would probably lead to lower capital investment in R&D compared with previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years.

The company also told investors that it no longer expects to achieve positive free cash flow for the latter six months of its present fiscal year.

UK authorities was contacted for comment.