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Aston Martin has blamed an earnings downgrade to US-imposed trade duties, as it calling on the British authorities for more active assistance.

The company, producing its cars in Warwickshire and south Wales, revised its earnings forecast on Monday, representing the second such revision in the current year. The firm expects deeper losses than the previously projected £110m shortfall.

Seeking Official Support

The carmaker voiced concerns with the British leadership, telling shareholders that despite having engaged with officials from both the UK and US, it had positive discussions with the US administration but required greater initiative from UK ministers.

It urged British authorities to safeguard the interests of small-volume manufacturers like Aston Martin, which create numerous employment opportunities and add value to local economies 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 introduction of a 25 percent duty on April 3, on top of an previous 2.5 percent charge.

During May, American and British leaders agreed to a agreement to cap tariffs on one hundred thousand British-made vehicles per year to 10 percent. This tariff level took effect on 30th June, aligning with the last day of the company's Q2.

Agreement Criticism

Nonetheless, Aston Martin criticised the trade deal, stating that the introduction of a American duty quota system introduces further complexity and restricts the company's ability to accurately forecast earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Other Challenges

Aston Martin also pointed to weaker demand partly due to greater likelihood for supply chain pressures, particularly following a recent cyber incident 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 led to a manufacturing halt.

Market Response

Stock in Aston Martin, traded on the LSE, fell by more than 11% as trading opened on Monday at the start of the week before partially rebounding to be 7 percent lower.

The group sold one thousand four hundred thirty vehicles in its Q3, falling short of earlier projections of being broadly similar to the 1,641 cars sold in the equivalent quarter the previous year.

Upcoming Initiatives

Decline in sales comes as Aston Martin prepares to launch its Valhalla, a mid-engine hypercar priced at approximately $1 million, which it hopes will boost earnings. Deliveries of the vehicle are scheduled to start in the last quarter of its financial year, though a projection of about 150 deliveries in those final quarter was lower than previous expectations, due to technical setbacks.

The brand, famous for its appearances in James Bond films, has started a review of its future cost and investment strategy, which it indicated would likely result in reduced capital investment in R&D compared with earlier forecasts of approximately £2 billion between its 2025 to 2029 fiscal years.

The company also informed investors that it does not anticipate to achieve positive free cash flow for the second half of its current year.

The government was contacted for comment.