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Aston Martin has blamed a profit warning to US-imposed trade duties, while simultaneously urging the UK government for more proactive support.

The company, which builds its vehicles in factories across England and Wales, lowered its earnings forecast on Monday, marking the another revision in the current year. The firm expects a larger loss than the earlier estimated £110 million deficit.

Seeking Official Backing

The carmaker expressed frustration with the UK government, telling investors that while it has engaged with officials from both the UK and US, it had productive talks with the US administration but required greater initiative from British officials.

It urged UK officials to safeguard the interests of niche automakers such as itself, which create thousands of jobs and contribute to local economies and the wider British car industry network.

International Commerce Impact

The US President has disrupted the worldwide markets with a trade war this year, heavily impacting the car sector through the introduction of a 25 percent duty on April 3, on top of an previous 2.5 percent charge.

During May, the US president and Keir Starmer reached a agreement to limit duties on one hundred thousand British-made vehicles per year to 10 percent. This rate came into force on June 30, coinciding with the final day of Aston Martin's Q2.

Agreement Criticism

However, the manufacturer criticised the trade deal, stating that the introduction of a American duty quota system adds additional complications and restricts the company's ability to accurately forecast earnings for the current fiscal year-end and possibly quarterly from 2026 onwards.

Additional Challenges

Aston Martin also cited weaker demand partially because of greater likelihood for logistical challenges, especially after a recent cyber incident at a leading British car producer.

UK automotive sector has been rattled this year by a digital breach on the country's largest automotive employer, which prompted a production freeze.

Market Response

Stock in Aston Martin, traded on the London Stock Exchange, fell by over 11 percent as markets opened on Monday morning before partially rebounding to be 7 percent lower.

Aston Martin delivered 1,430 vehicles in its Q3, falling short of earlier projections of being roughly equal to the 1,641 vehicles sold in the equivalent quarter the previous year.

Upcoming Plans

Decline in demand comes as Aston Martin prepares to launch its Valhalla, a mid-engine supercar priced at around £743,000, which it expects will increase profits. Deliveries of the car are scheduled to begin in the last quarter of its fiscal year, although a projection of about 150 units in those three months was lower than earlier estimates, due to engineering delays.

The brand, well-known for its roles in the 007 movie series, has initiated a evaluation of its upcoming expenditure and spending plans, which it indicated would probably result in reduced capital investment in R&D versus earlier forecasts of approximately £2 billion between its 2025 and 2029 fiscal years.

The company also informed investors that it no longer expects to generate profitable cash generation for the second half of its present fiscal year.

UK authorities was contacted for comment.