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Aston Martin has attributed a profit warning to US-imposed tariffs, as it calling on the UK government for more proactive support.

The company, producing its cars in Warwickshire and south Wales, lowered its earnings forecast on Monday, representing the second such revision this year. It now anticipates deeper losses than the earlier estimated £110m deficit.

Seeking Official Backing

Aston Martin expressed frustration with the UK government, informing shareholders that while it has communicated with officials from both the UK and US, it had productive talks with the US administration but required more proactive support from British officials.

The company called on UK officials to safeguard the needs of niche automakers like Aston Martin, which create numerous employment opportunities and add value to regional finances and the wider British car industry network.

Global Trade Impact

The US President has disrupted the global economy with a tariff conflict this year, heavily impacting the car sector through the imposition of a 25 percent duty on April 3, in addition to an existing 2.5 percent charge.

During May, the US president and Keir Starmer agreed to a deal to cap tariffs on one hundred thousand UK-built cars annually to 10 percent. This tariff level came into force on June 30, aligning with the final day of the company's second financial quarter.

Agreement Concerns

However, Aston Martin expressed reservations about the bilateral agreement, arguing that the implementation of a US tariff quota mechanism adds further complexity and restricts the company's capacity to precisely predict financial performance for the current fiscal year-end and possibly each quarter starting in 2026.

Other Challenges

Aston Martin also cited weaker demand partially because of greater likelihood for logistical challenges, especially after a recent cyber incident at a major UK automotive manufacturer.

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.

Market Reaction

Shares in the company, listed on the London Stock Exchange, fell by more than 11% as trading opened on Monday morning before partially rebounding to stand down 7%.

The group delivered 1,430 cars in its third quarter, missing earlier projections of being roughly equal to the 1,641 vehicles delivered in the equivalent quarter last year.

Upcoming Plans

The wobble in sales comes as Aston Martin prepares to launch its flagship hypercar, a mid-engine supercar costing approximately $1 million, which it expects will increase profits. Deliveries of the vehicle are scheduled to start in the last quarter of its fiscal year, although a forecast of about 150 deliveries in those three months was lower than previous expectations, reflecting engineering delays.

The brand, famous for its appearances in the 007 movie series, has started a evaluation of its future cost and investment strategy, which it said would likely lead to lower capital investment in engineering and development 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 achieve profitable cash generation for the latter six months of its present fiscal year.

The government was approached for a statement.