🔗 Share this article The Luxury Carmaker Issues Profit Warning Amid American Trade Challenges and Requests Government Assistance Aston Martin has attributed a profit warning to Donald Trump's trade duties, while simultaneously calling on the UK government for greater proactive support. This manufacturer, which builds its cars in Warwickshire and south Wales, revised its profit outlook on Monday, marking the another revision this year. The firm expects a larger loss than the earlier estimated £110 million shortfall. Requesting Official Backing Aston Martin expressed frustration with the UK government, informing shareholders that while it has communicated with officials on both sides, it had productive talks directly with the US administration but required more proactive support from British officials. It urged British authorities to safeguard the needs of small-volume manufacturers such as itself, which provide thousands of jobs and add value to regional finances and the broader UK automotive supply chain. International Commerce Effects Trump 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 April 3, on top of an existing 2.5% levy. In May, the US president and Keir Starmer reached a deal to limit duties on 100,000 British-made cars per year to 10 percent. This tariff level took effect on June 30, coinciding with the final day of Aston Martin's second financial quarter. Agreement Criticism However, the manufacturer expressed reservations about the trade deal, arguing that the implementation of a US tariff quota mechanism adds further complexity and limits the company's capacity to accurately forecast earnings for the current fiscal year-end and possibly quarterly from 2026 onwards. Other Factors The carmaker also cited reduced sales partially because of greater likelihood for logistical challenges, especially following a recent digital attack at a major UK automotive manufacturer. 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 Reaction Shares in the company, traded on the London Stock Exchange, dropped by more than 11% as markets opened on Monday at the start of the week before recovering some ground to be down 7%. The group delivered one thousand four hundred thirty vehicles in its third quarter, missing earlier projections of being roughly equal to the one thousand six hundred forty-one cars sold in the equivalent quarter last year. Future Initiatives Decline in demand comes as Aston Martin gears up to release its flagship hypercar, a rear-engine supercar priced at approximately £743,000, which it expects will boost earnings. Shipments 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 lower than previous expectations, reflecting engineering delays. Aston Martin, famous for its appearances in the 007 movie series, has initiated a review of its upcoming expenditure and investment strategy, which it said would probably result in reduced capital investment in engineering and development compared with previous guidance of about £2bn between its 2025 to 2029 financial years. The company also told investors that it does not anticipate to achieve positive free cash flow for the second half of its present fiscal year. The government was contacted for a statement.