🔗 Share this article The Luxury Carmaker Releases Profit Warning Due to US Tariff Pressures and Requests Official Support Aston Martin has attributed a profit warning to US-imposed tariffs, as it calling on the UK government for more active assistance. The company, producing its vehicles in factories across England and Wales, lowered its earnings forecast on Monday, representing the second such downgrade in the current year. It now anticipates a larger loss than the earlier estimated £110 million shortfall. Seeking Official Support Aston Martin voiced concerns with the British leadership, telling shareholders that despite having communicated with officials on both sides, it had positive discussions directly with the American government but required more proactive support from UK ministers. The company called on British authorities to protect the needs of small-volume manufacturers such as itself, which create numerous employment opportunities and add value to regional finances and the wider British car industry network. International Commerce Effects Trump has shaken the global economy with a trade war this year, significantly affecting the automotive industry through the imposition of a 25% tariff on 3rd April, in addition to an previous 2.5 percent charge. During May, the US president and Keir Starmer reached a agreement to cap duties on one hundred thousand British-made cars per year to 10%. This rate came into force on June 30, coinciding 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 US tariff quota mechanism introduces additional complications and limits the company's ability to accurately forecast financial performance for the current fiscal year-end and potentially each quarter starting in 2026. Other Factors Aston Martin also pointed to reduced sales partially because of 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 digital breach on Jaguar Land Rover, which prompted a manufacturing halt. Market Response Shares in Aston Martin, listed on the London Stock Exchange, fell by more than 11% as trading opened on Monday at the start of the week before recovering some ground to be down 7%. Aston Martin 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 equivalent quarter last year. Future Plans The wobble in demand comes as Aston Martin prepares to launch its Valhalla, a rear-engine supercar costing around $1 million, which it hopes will increase profits. Shipments of the car are scheduled to start in the final quarter of its fiscal year, though a forecast of about 150 units in those three months was lower than earlier estimates, reflecting technical setbacks. Aston Martin, well-known for its appearances in the 007 movie series, has initiated a review of its future cost and spending plans, which it indicated would likely result in reduced spending in R&D compared with previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years. Aston Martin also informed investors that it no longer expects to achieve profitable cash generation for the latter six months of its current year. The government was contacted for a statement.