Rolls-Royce, the renowned engineering company based in Derby, is exploring the possibility of relocating some of its engine manufacturing operations to the United States in response to the ongoing trade tariffs imposed by former President Donald Trump.
The move is part of the company’s strategy to mitigate the impact of Trump’s trade war on its global operations. Sources indicate that Rolls-Royce is assessing the feasibility of moving more production to the US, aiming to protect itself from the economic strain caused by the tariffs, which are set to intensify following their implementation on April 2—referred to by Trump as “liberation day.”
While the company’s engine manufacturing at its Derby facility is unlikely to be affected in the immediate future, Rolls-Royce is reviewing its operations in other regions that are expected to bear the brunt of the tariff effects.
Although no definitive plans have been made, a Rolls-Royce spokesperson stated: “We have additional capacity within some of our US operations and are constantly exploring options to optimize our global supply chain for efficient delivery to US customers.”
The news follows a recent surge in Rolls-Royce’s stock value, which hit record highs following the release of impressive annual results. The company reported a significant jump in underlying profit from £1.26 billion to £2.29 billion last year. Looking ahead, Rolls-Royce has raised its mid-term operating profit forecast to between £3.6 billion and £3.9 billion, with a 2025 target of £2.7 billion to £2.9 billion.
CEO Tufan Erginbilgic emphasized that the company is “moving with pace and intensity” as it adapts to the evolving global market dynamics.