🔗 Share this article Aston Martin Announces Profit Warning Due to American Trade Challenges and Requests Government Support The automaker has blamed an earnings downgrade to Donald Trump's trade duties, as it urging the UK government for more proactive support. This manufacturer, which builds its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, representing the second such downgrade this year. The firm expects a larger loss than the earlier estimated £110m deficit. Seeking Official Support The carmaker expressed frustration with the British leadership, telling investors that despite having engaged with officials from both the UK and US, it had productive talks with the US administration but needed greater initiative from British officials. The company called on UK officials to safeguard the needs of small-volume manufacturers such as itself, which provide numerous employment opportunities and add value to local economies and the wider British car industry network. International Commerce Impact Trump has shaken the worldwide markets with a tariff conflict this year, significantly affecting the car sector through the introduction of a 25% tariff on April 3, in addition to an previous 2.5% levy. During May, the US president and Keir Starmer reached a deal to limit tariffs on one hundred thousand British-made vehicles per year to 10%. This tariff level took effect on 30th June, aligning with the final day of the company's Q2. Trade Deal Concerns Nonetheless, Aston Martin criticised the bilateral agreement, stating that the implementation of a US tariff quota mechanism introduces additional complications and limits the company's ability to accurately forecast earnings for this financial year end and possibly quarterly from 2026 onwards. Additional Challenges The carmaker also pointed to reduced sales partially because of greater likelihood for supply chain pressures, particularly following a recent digital attack at a leading British car producer. UK automotive sector has been rattled this year by a cyber-attack on the country's largest automotive employer, which prompted a manufacturing halt. Financial Response Shares in Aston Martin, listed on the London Stock Exchange, dropped by over 11 percent as trading opened on Monday at the start of the week before recovering some ground to be 7 percent lower. Aston Martin delivered 1,430 cars in its third quarter, missing previous guidance of being roughly equal to the one thousand six hundred forty-one vehicles delivered in the equivalent quarter last year. Future Plans The wobble in sales comes as the manufacturer gears up to release its Valhalla, a mid-engine hypercar priced at around £743,000, which it expects will increase earnings. Deliveries of the car are scheduled to start in the last quarter of its fiscal year, though a projection of approximately one hundred fifty deliveries in those three months was below previous expectations, reflecting technical setbacks. The brand, well-known for its appearances in the 007 movie series, has started a evaluation of its upcoming expenditure and investment strategy, which it said would likely result in lower capital investment in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 to 2029 fiscal years. Aston Martin also told investors that it no longer expects to achieve positive free cash flow for the second half of its current year. UK authorities was contacted for comment.