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The automaker has attributed an earnings downgrade to Donald Trump's tariffs, while simultaneously calling on the UK government for greater proactive support.

This manufacturer, producing its cars in factories across England and Wales, revised its profit outlook on Monday, representing the another revision this year. The firm expects deeper losses than the earlier estimated £110m deficit.

Requesting Government Backing

Aston Martin voiced concerns with the UK government, telling investors that while it has communicated with representatives on both sides, it had productive talks with the American government but needed more proactive support from UK ministers.

The company called on UK officials to protect the needs of niche automakers such as itself, which provide numerous employment opportunities and contribute to local economies and the broader UK automotive supply chain.

Global Trade Impact

Trump has shaken the worldwide markets with a trade war this year, heavily impacting the automotive industry through the imposition of a 25 percent duty on April 3, in addition to an previous 2.5 percent charge.

During May, American and British leaders agreed to a agreement to limit tariffs on 100,000 British-made cars annually to 10%. This tariff level took effect on 30th June, aligning with the final day of the company's Q2.

Trade Deal Concerns

However, the manufacturer criticised the bilateral agreement, stating that the introduction of a US tariff quota mechanism introduces additional complications and restricts the company's capacity to precisely predict earnings for this financial year end and potentially quarterly from 2026 onwards.

Other Challenges

The carmaker also cited weaker demand partly due to greater likelihood for supply chain pressures, especially after a recent digital attack at a major UK automotive manufacturer.

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

Market Reaction

Shares in the company, listed on the LSE, dropped by more than 11% as markets opened on Monday morning before partially rebounding to stand 7 percent lower.

The group sold one thousand four hundred thirty cars in its Q3, falling short of previous guidance of being roughly equal to the 1,641 cars sold in the equivalent quarter last year.

Future Initiatives

Decline in sales comes as the manufacturer gears up to release its flagship hypercar, a mid-engine supercar priced at around $1 million, which it hopes will increase profits. Shipments of the car are scheduled to begin in the last quarter of its fiscal year, although a forecast of about 150 units in those final quarter was below previous expectations, reflecting technical setbacks.

Aston Martin, famous for its roles in James Bond films, has started a evaluation of its future cost and spending plans, which it indicated would likely result in reduced capital investment in engineering and development versus previous guidance of approximately £2 billion between its 2025 and 2029 financial years.

Aston Martin also told shareholders that it does not anticipate to achieve positive free cash flow for the second half of its current year.

The government was contacted for a statement.