Aston Martin on Monday issued a stark profit warning, projecting annual losses exceeding £110 million for 2025, citing mounting pressures from U.S. import tariffs, weakening demand in China, and production challenges, according to a Reuters summary.

The British luxury carmaker revealed that its third-quarter deliveries fell short—1,430 units versus 1,641 in the same period a year ago. It has also revised downward its volume outlook, forecasting a mid-to-high single-digit percentage drop in full-year shipments.

Key headwinds include the U.S. tariff quota system. Under a U.S.–UK trade deal, the first 100,000 UK-made cars annually face a 10% tariff; beyond that, vehicles are subject to as high as 27.5%. Aston Martin says this quota mechanism complicates forecasting and planning.

Further pressure comes from China, where new taxes on ultra-luxury vehicles and slower consumer demand are dragging on sales. The company also flagged supply chain risk and spillover from a cyberattack at Jaguar Land Rover as additional stressors.

In response, Aston Martin plans to cut capital expenditures and no longer expects to generate positive free cash flow in the second half of the year. It is also delaying deliveries of its Valhalla hypercar, now targeting about 150 units in Q4—less than earlier projections.

Shares tumbled ~11% on the news. The company has appealed to the UK government for support, arguing that small-volume manufacturers need protection in a volatile tariff environment.

Analysts warn that for Aston Martin to stabilize, it will need to reassess pricing, reduce costs, and find growth in markets less exposed to tariff volatility.