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Rolls-Royce, the Derby-headquartered engineering giant, could shift some of its engine-making capabilities to the US to mitigate against Donald Trump’s trade tariffs.
Rolls is ramping up its production in the US to try and counter the damage done by Trump’s trade war with the rest of the world. According to reports, the company is looking at how much production can be shifted to the US.
The move is not likely to affect engine-making at its Derby site in the short-term, but is reviewing it operations in other countries which are likely to feel the most intense economic pain as Trump’s tariffs hit on April 2, which the President is calling “liberation day”.
However, according to The Telegraph, Rolls has not specifically ruled-out moving production away from the UK.
A Rolls spokesperson said: “We have additional capacity within some of our US operations and continuously seek to explore options to ensure that our global internal supply chain is optimised for delivery to customers in the US.”
The news comes just weeks after Rolls-Royce’s share price hit record highs on the back of stellar annual results, which showed showed underlying profit rise from £1.26bn to £2.29bn last year. The business is forecasting its 2025 adjusted operating profit to come in between £2.7bn and £2.9bn.
The firm has upgraded its mid-term operating profit targets to between £3.6bn-£3.9bn.
Tufan Erginbilgic, CEO, said Rolls-Royce is now moving “with pace and intensity”.