🔗 Share this article The Luxury Carmaker Issues Profit Warning Due to American Trade Challenges and Requests Government Support Aston Martin has attributed an earnings downgrade to US-imposed tariffs, as it urging the UK government for greater active assistance. This manufacturer, producing its cars in factories across England and Wales, revised its profit outlook on Monday, representing the second such downgrade this year. The firm expects a larger loss than the earlier estimated £110 million deficit. Requesting Official Support Aston Martin expressed frustration with the UK government, informing investors that while it has communicated with officials on both sides, it had positive discussions directly with the US administration but needed more proactive support from UK ministers. It urged British authorities to safeguard the interests of small-volume manufacturers like Aston Martin, which create thousands of jobs and add value to regional finances and the broader UK automotive supply chain. Global Trade Effects The US President has shaken the global economy with a trade war this year, heavily impacting the automotive industry through the imposition of a 25 percent duty on 3rd April, in addition to an existing 2.5 percent charge. In May, the US president and Keir Starmer reached a deal to limit tariffs on 100,000 British-made cars annually to 10 percent. This rate came into force on June 30, coinciding with the last day of Aston Martin's second financial quarter. Trade Deal Concerns Nonetheless, Aston Martin expressed reservations about the trade deal, stating that the introduction of a US tariff quota mechanism introduces additional complications and restricts the company's capacity to accurately forecast earnings for this financial year end and potentially quarterly from 2026 onwards. Other Factors The carmaker also pointed to weaker demand partially because of increased potential for supply chain pressures, especially following a recent cyber incident at a leading British car producer. UK automotive sector has been shaken this year by a cyber-attack on Jaguar Land Rover, which led to a production freeze. Market Reaction Stock in Aston Martin, traded on the London Stock Exchange, fell by more than 11% as markets opened on Monday at the start of the week before recovering some ground to be 7 percent lower. Aston Martin delivered one thousand four hundred thirty cars in its Q3, falling short of previous guidance of being roughly equal to the 1,641 vehicles sold in the same period the previous year. Upcoming Plans Decline in sales coincides with the manufacturer prepares to launch its Valhalla, a mid-engine supercar priced at around £743,000, which it hopes will boost earnings. Deliveries of the car are expected to begin in the last quarter of its financial year, though a forecast of approximately one hundred fifty units in those three months was lower than earlier estimates, reflecting technical setbacks. The brand, well-known for its roles in James Bond films, has initiated a review of its upcoming expenditure and spending plans, which it indicated would probably result in reduced capital investment in engineering and development compared with previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years. The company also told investors that it does not anticipate to achieve positive free cash flow for the latter six months of its current year. UK authorities was contacted for a statement.