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Aston Martin has attributed a profit warning to US-imposed tariffs, while simultaneously urging the UK government for more proactive support.

The company, which builds its cars in factories across England and Wales, lowered its profit outlook on Monday, marking the second such revision in the current year. The firm expects a larger loss than the previously projected £110 million deficit.

Seeking Official Backing

The carmaker expressed frustration with the UK government, telling shareholders that despite having communicated with officials from both the UK and US, it had positive discussions directly with the US administration but needed more proactive support from British officials.

The company called on UK officials to protect the needs of niche automakers like Aston Martin, which provide numerous employment opportunities and contribute to regional finances and the broader UK automotive supply chain.

International Commerce Effects

Trump has shaken the worldwide markets with a trade war this year, heavily impacting the car sector through the introduction of a 25 percent duty on 3rd April, on top of an existing 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%. This rate came into force on 30th June, coinciding with the last day of Aston Martin's Q2.

Agreement Criticism

However, Aston Martin expressed reservations about the bilateral agreement, arguing that the implementation of a American duty quota system adds further complexity and restricts the group's capacity to precisely predict financial performance for this financial year end and potentially quarterly from 2026 onwards.

Additional Factors

The carmaker also cited reduced sales partly due to greater likelihood for supply chain pressures, particularly following a recent cyber incident at a leading British car producer.

The British car industry has been shaken this year by a digital breach on the country's largest automotive employer, which prompted a manufacturing halt.

Financial Reaction

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

The group delivered 1,430 vehicles in its Q3, missing earlier projections of being broadly similar to the one thousand six hundred forty-one vehicles sold in the same period last year.

Upcoming Plans

The wobble in sales comes as Aston Martin gears up to release its Valhalla, a mid-engine hypercar priced at around £743,000, which it expects will increase earnings. Deliveries of the vehicle are scheduled to begin in the last quarter of its fiscal year, though a forecast of approximately one hundred fifty deliveries in those final quarter was below previous expectations, due to engineering delays.

The brand, 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 earlier forecasts of about £2bn between its 2025 to 2029 financial years.

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

UK authorities was contacted for comment.