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

This manufacturer, which builds its vehicles in factories across England and Wales, revised its earnings forecast on Monday, marking the another revision in the current year. The firm expects a larger loss than the previously projected £110 million shortfall.

Requesting Government Support

Aston Martin expressed frustration with the British leadership, telling shareholders that while it has engaged with officials from both the UK and US, it had positive discussions directly with the American government but needed greater initiative from British officials.

It urged British authorities to protect the interests of small-volume manufacturers such as itself, which provide numerous employment opportunities and add value to regional finances and the wider British car industry network.

International Commerce Impact

Trump has disrupted the global economy with a tariff conflict this year, heavily impacting the car sector through the introduction of a 25% tariff on 3rd April, on top of an previous 2.5 percent charge.

In May, American and British leaders agreed to a deal to limit duties on one hundred thousand British-made cars annually to 10 percent. This tariff level took effect on 30th June, aligning with the final day of Aston Martin's second financial quarter.

Agreement Concerns

Nonetheless, Aston Martin criticised the bilateral agreement, arguing that the implementation of a US tariff quota mechanism adds further complexity and limits the company's capacity to accurately forecast financial performance for this financial year end and potentially each quarter starting in 2026.

Additional Challenges

Aston Martin also cited weaker demand partially because of increased potential for logistical challenges, especially after a recent digital attack 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 manufacturing halt.

Market Response

Stock in the company, listed on the LSE, fell by over 11 percent as markets opened on Monday morning before partially rebounding to be down 7%.

Aston Martin sold one thousand four hundred thirty vehicles in its third quarter, missing previous guidance of being roughly equal to the 1,641 cars sold in the same period last year.

Upcoming Plans

Decline in sales comes as the manufacturer gears up to release its flagship hypercar, a rear-engine supercar priced at around £743,000, which it expects will increase earnings. Shipments of the vehicle are scheduled to start in the final quarter of its financial year, although a forecast of approximately one hundred fifty units in those final quarter was below earlier estimates, due to engineering delays.

The brand, well-known for its appearances in the 007 movie series, has initiated a review of its future cost and investment strategy, which it indicated would probably result in reduced spending in engineering and development compared with earlier forecasts of about £2bn between its 2025 and 2029 fiscal years.

The company also informed investors that it does not anticipate to generate profitable cash generation for the second half of its present fiscal year.

The government was contacted for a statement.