"Aston Martin has blamed Donald Trump's tariffs for a profit warning, as the carmaker urged the UK government to offer more proactive support. The company, which manufactures its cars in factories in Warwickshire and south Wales, downgraded its profit outlook on Monday for the second time this year. It said that it now expects to make a larger loss than the 110m loss that was the lower end of its profit forecasts."
"The carmaker hit out at the UK government, telling investors that while it was engaged with officials from both sides of the Atlantic, it had had positive dialogue directly with the US administration but sought more proactive support from British ministers. It urged UK officials to protect the interests of small-volume manufacturers, like Aston Martin, who provide thousands of jobs, making an important contribution to local economies and to the wider UK automotive supply chain."
"Trump has disrupted the global economy with a trade war this year, causing a shakeup in the car industry with his imposition of a 25% tariff on 3 April on top of an existing 2.5% levy. In May, the US president and Keir Starmer agreed a deal to limit tariffs on 100,000 British-made cars a year to 10%. That rate came into force on 30 June, the final day of Aston Martin's second financial quarter."
Aston Martin downgraded its profit outlook for the second time this year and now expects a larger loss than the 110m lower-end forecast. The company blamed US tariffs and a complex US tariff quota for cutting margins and complicating forecasting. The carmaker said it engaged positively with the US administration while urging more proactive support from UK ministers to protect small-volume manufacturers and jobs. Weaker demand and increased supply-chain pressures, including effects from a cyber incident at a major UK automotive manufacturer, also contributed to the warning. The tariff quota came into force on 30 June, affecting quarterly and annual projections.
Read at www.theguardian.com
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