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Aston Martin has attributed a profit warning to Donald Trump's trade duties, as it calling on the UK government for more active assistance.

The company, producing its vehicles in Warwickshire and south Wales, revised its profit outlook on Monday, representing the second such revision this year. The firm expects deeper losses than the previously projected £110 million deficit.

Requesting Government Backing

The carmaker expressed frustration with the UK government, telling shareholders that despite having engaged with representatives on both sides, it had productive talks with the US administration but required greater initiative from UK ministers.

The company called on UK officials to safeguard the interests of small-volume manufacturers like Aston Martin, which create thousands of jobs and add value to local economies and the wider British car industry network.

Global Trade Effects

The US President has disrupted the worldwide markets with a tariff conflict this year, significantly affecting the automotive industry through the introduction of a 25% tariff on April 3, in addition to an previous 2.5% levy.

During May, the US president and Keir Starmer reached a agreement to cap tariffs on 100,000 UK-built cars per year to 10%. This tariff level took effect on 30th June, aligning with the final day of the company's Q2.

Agreement Concerns

Nonetheless, Aston Martin expressed reservations about the trade deal, stating that the introduction of a American duty quota system introduces additional complications and restricts the company's capacity to accurately forecast financial performance for this financial year end and potentially quarterly from 2026 onwards.

Additional Factors

The carmaker also cited weaker demand partly due to greater likelihood for supply chain pressures, particularly following a recent digital attack at a leading British car producer.

UK automotive sector has been rattled this year by a digital breach on Jaguar Land Rover, which prompted a production freeze.

Market Reaction

Stock in Aston Martin, traded on the LSE, fell by more than 11% as markets opened on Monday morning before partially rebounding to be 7 percent lower.

Aston Martin delivered one thousand four hundred thirty vehicles in its third quarter, falling short of previous guidance of being broadly similar to the one thousand six hundred forty-one vehicles delivered in the same period last year.

Future Plans

Decline in demand comes as the manufacturer prepares to launch its Valhalla, a mid-engine hypercar costing approximately $1 million, which it expects will boost earnings. Deliveries of the vehicle are scheduled to start in the last quarter of its financial year, although a forecast of approximately one hundred fifty deliveries in those final quarter was lower than previous expectations, due to engineering delays.

Aston Martin, famous for its roles in the 007 movie series, has initiated a evaluation of its future cost and investment strategy, which it said would probably lead to lower spending in engineering and development compared with previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years.

The company also informed investors that it does not anticipate to achieve positive free cash flow for the latter six months of its present fiscal year.

UK authorities was approached for a statement.