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Aston Martin has blamed a profit warning to US-imposed tariffs, as it calling on the British authorities for greater active assistance.

This manufacturer, producing its cars in Warwickshire and south Wales, lowered its profit outlook on Monday, representing the another revision this year. The firm expects a larger loss than the previously projected £110m deficit.

Requesting Government Support

Aston Martin voiced concerns with the UK government, informing investors that despite having engaged with officials on both sides, it had productive talks 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 thousands of jobs and add value to regional finances and the broader UK automotive supply chain.

Global Trade Impact

The US President has shaken the global economy with a tariff conflict this year, significantly affecting the automotive industry through the introduction of a 25 percent duty on 3rd April, in addition to an previous 2.5 percent charge.

In May, American and British leaders agreed to a agreement to limit duties on 100,000 UK-built vehicles annually to 10%. This tariff level came into force on 30th June, coinciding with the final day of Aston Martin's second financial quarter.

Agreement Criticism

Nonetheless, Aston Martin criticised the trade deal, stating that the implementation of a US tariff quota mechanism introduces additional complications and restricts the company's ability to accurately forecast financial performance for this financial year end and possibly quarterly from 2026 onwards.

Other Factors

The carmaker also cited reduced sales partially because of increased potential for supply chain pressures, especially following a recent cyber incident at a major UK automotive manufacturer.

UK automotive sector has been rattled this year by a digital breach on Jaguar Land Rover, which led to a manufacturing halt.

Market Response

Shares in the company, traded on the LSE, dropped by more than 11% as trading opened on Monday at the start of the week before recovering some ground to be down 7%.

Aston Martin delivered 1,430 vehicles in its Q3, falling short of previous guidance of being broadly similar to the 1,641 cars sold in the same period the previous year.

Upcoming Plans

Decline in demand coincides with Aston Martin gears up to release its Valhalla, a rear-engine supercar costing approximately $1 million, which it hopes will increase profits. Shipments of the vehicle are scheduled to start in the last quarter of its fiscal year, although a forecast of about 150 units in those final quarter was below earlier estimates, due to engineering delays.

Aston Martin, well-known for its appearances in James Bond films, has started a evaluation of its upcoming expenditure and investment strategy, which it indicated would likely lead to lower capital investment in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 and 2029 financial years.

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

The government was contacted for comment.