Rolls-Royce Planning to Shift Production to United States to Avoid Trump Tariffs: Report

British engineering giant Rolls-Royce is reportedly preparing to increase manufacturing production in the United States to avoid tariffs imposed by President Donald Trump. London’s Daily Telegraph reported that Rolls-Royce is currently drafting contingency plans to avoid the impact of trade restrictions imposed by the Trump administration. The plans are said to include ramping up production in America and hiring more workers in the United States.According to the report, the aerospace and defence company is considering shifting production from countries impacted by the trade war, such as China, Canada, and Mexico, where it currently has around 6,000 workers.

A source told the British broadsheet, “If you are making something in countries like China, then you’ll be looking at whether you can do it in the US instead.” Additionally, Rolls is also considering potentially shifting production from the UK and Europe should tariffs threaten its manufacturing sites in the regions.

In a message to shareholders, the firm said that trade restrictions “could lead to increased costs and consequently realign the global supply chain”. “Market exposures are being monitored, and we are adapting supply chain strategies to ensure resilience amid potential protectionist measures and evolving trade dynamics. ”The United States is a critical market for the British firm, accounting for around a third of its global turnover. Top buyers include the U.S. Department of Defence, Boeing, and Lockheed Martin. (Ed note: besides their luxury cars, RR also produces aero engines, marine propulsion, and types of "power systems for defense and civil applications."  (Read More)