🔗 Share this article Aston Martin Announces Profit Warning Amid American Trade Challenges and Seeks Government Assistance The automaker has attributed a profit warning to Donald Trump's tariffs, while simultaneously calling on the UK government for more active assistance. This manufacturer, which builds its vehicles in factories across England and Wales, revised its profit outlook on Monday, representing the second such revision this year. It now anticipates a larger loss than the earlier estimated £110 million deficit. Seeking Official Backing The carmaker voiced concerns with the UK government, telling investors that despite having communicated with officials from both the UK and US, it had positive discussions with the American government but needed more proactive support from British officials. The company called on British authorities to protect the needs of small-volume manufacturers such as itself, which provide numerous employment opportunities and add value to local economies and the wider British car industry network. Global Trade Impact 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, in addition to an previous 2.5% levy. During May, the US president and Keir Starmer agreed to a agreement to cap duties on one hundred thousand UK-built vehicles per year to 10 percent. This rate took effect on 30th June, aligning with the final day of Aston Martin's Q2. Trade Deal Criticism Nonetheless, Aston Martin expressed reservations about the bilateral agreement, stating that the introduction of a American duty quota system introduces further complexity and restricts the group's ability to accurately forecast financial performance for this financial year end and potentially each quarter starting in 2026. Additional Factors The carmaker also cited reduced sales partially because of increased potential for logistical challenges, particularly after a recent cyber incident at a major UK automotive manufacturer. The British car industry has been rattled this year by a digital breach on Jaguar Land Rover, which prompted a manufacturing halt. Market Reaction Stock in the company, listed on the London Stock Exchange, dropped by over 11 percent as markets opened on Monday morning before partially rebounding to be 7 percent lower. Aston Martin sold one thousand four hundred thirty vehicles in its third quarter, falling short of earlier projections of being broadly similar to the one thousand six hundred forty-one vehicles sold in the same period last year. Upcoming Plans Decline in sales coincides with the manufacturer prepares to launch its Valhalla, a rear-engine supercar priced at approximately £743,000, which it hopes will boost earnings. Shipments of the vehicle are scheduled to start in the last quarter of its fiscal year, although a forecast of about 150 units in those final quarter was lower than previous expectations, due to technical setbacks. The brand, well-known for its appearances in James Bond films, has started a evaluation of its future cost and investment strategy, which it said would likely result in lower capital investment in R&D versus earlier forecasts of approximately £2 billion between its 2025 to 2029 fiscal years. The company also told shareholders that it does not anticipate to generate positive free cash flow for the latter six months of its present fiscal year. UK authorities was approached for comment.