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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, which builds its cars in factories across England and Wales, revised its earnings forecast on Monday, marking the second such revision this year. It now anticipates deeper losses than the previously projected £110 million shortfall.

Seeking Government Support

Aston Martin expressed frustration with the UK government, informing investors that while it has engaged with representatives from both the UK and US, it had productive talks directly with the US administration but needed greater initiative from British officials.

The company called on British authorities to safeguard the needs of small-volume manufacturers like Aston Martin, which create numerous employment opportunities and contribute to regional finances and the broader UK automotive supply chain.

International Commerce Effects

The US President has shaken the worldwide markets with a tariff conflict this year, heavily impacting the car sector through the imposition of a 25 percent duty on April 3, on top of an existing 2.5% levy.

In May, American and British leaders agreed to a agreement to limit duties on one hundred thousand UK-built vehicles annually to 10%. This rate took effect on June 30, aligning with the final day of the company's second financial quarter.

Agreement Concerns

Nonetheless, Aston Martin expressed reservations about the bilateral agreement, arguing that the introduction of a US tariff quota mechanism introduces additional complications and restricts the group's capacity to precisely predict earnings for this financial year end and potentially quarterly from 2026 onwards.

Other Challenges

Aston Martin also cited reduced sales partly due to increased potential for supply chain pressures, especially after a recent digital attack at a major UK automotive manufacturer.

The British car industry has been rattled this year by a digital breach on the country's largest automotive employer, which led to a production freeze.

Financial Reaction

Stock in Aston Martin, listed on the LSE, dropped by over 11 percent as markets opened on Monday at the start of the week before recovering some ground to be 7 percent lower.

The group delivered 1,430 cars in its Q3, falling short of earlier projections of being broadly similar to the one thousand six hundred forty-one vehicles delivered in the equivalent quarter the previous year.

Upcoming Initiatives

Decline in sales comes as Aston Martin gears up to release its flagship hypercar, a mid-engine hypercar costing around $1 million, which it hopes will boost earnings. Deliveries of the car are expected to start in the last quarter of its financial year, though a forecast of about 150 deliveries in those final quarter was below earlier estimates, reflecting technical setbacks.

Aston Martin, famous for its appearances in James Bond films, has started a review of its future cost and investment strategy, which it said would likely result in reduced spending in R&D versus earlier forecasts of about £2bn between its 2025 and 2029 fiscal years.

Aston Martin also informed investors that it does not anticipate to generate positive free cash flow for the latter six months of its current year.

The government was contacted for comment.