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Aston Martin has attributed an earnings downgrade to Donald Trump's trade duties, as it calling on the UK government for more proactive support.

This manufacturer, which builds its vehicles in factories across England and Wales, lowered its earnings forecast on Monday, representing the another downgrade in the current year. The firm expects a larger loss than the earlier estimated £110m deficit.

Requesting Official Backing

The carmaker expressed frustration with the British leadership, telling investors that while it has communicated with representatives on both sides, it had productive talks with the US administration but required greater initiative from British officials.

It urged British authorities to protect the needs of niche automakers such as itself, which create thousands of jobs and contribute to regional finances and the wider British car industry network.

International Commerce Impact

Trump has shaken the worldwide markets with a trade war this year, significantly affecting the car sector through the imposition of a 25 percent duty on April 3, in addition to an existing 2.5 percent charge.

During May, the US president and Keir Starmer agreed to a deal to cap duties on 100,000 British-made vehicles per year to 10 percent. This rate came into force on June 30, coinciding with the final day of the company's second financial quarter.

Agreement Criticism

Nonetheless, Aston Martin expressed reservations about the trade deal, arguing that the introduction of a US tariff quota mechanism adds further complexity and limits the group's ability to precisely predict financial performance for this financial year end and possibly quarterly from 2026 onwards.

Other Factors

Aston Martin also pointed to weaker demand partially because of increased potential for supply chain pressures, especially after a recent cyber incident at a leading British car producer.

The British car industry has been shaken this year by a cyber-attack on Jaguar Land Rover, which led to a production freeze.

Market Response

Stock in Aston Martin, listed on the LSE, fell by more than 11% as trading opened on Monday morning before partially rebounding to be down 7%.

The group sold 1,430 cars in its third quarter, missing earlier projections of being roughly equal to the one thousand six hundred forty-one cars delivered in the equivalent quarter last year.

Upcoming Plans

The wobble in demand comes as the manufacturer prepares to launch its Valhalla, a rear-engine supercar costing around £743,000, which it expects will increase profits. Shipments of the car are scheduled to start in the last quarter of its financial year, though a projection of about 150 deliveries in those final quarter was below previous expectations, due to engineering delays.

Aston Martin, well-known for its roles in the 007 movie series, has started a evaluation of its future cost and investment strategy, which it indicated would probably lead to lower capital investment in engineering and development versus previous guidance of approximately £2 billion between its 2025 and 2029 financial years.

The company also told investors that it no longer expects to achieve positive free cash flow for the second half of its present fiscal year.

UK authorities was approached for comment.