Rolls Royce is preparing to expand its manufacturing footprint in the United States in response to potential tariffs from President Donald Trump’s administration, according to a report from the Daily Telegraph.
The British engineering and automotive company is reportedly drafting contingency plans aimed at shielding its operations from possible trade penalties.
The U.K.-based firm is considering shifting portions of its manufacturing from countries like Mexico, China, and Canada to facilities in the United States.
BREAKING:
Rolls Royce will shift production to the United States and will hire American workers to avoid the tariffs.
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Rolls Royce currently employs 6,000 workers at 11 U.S. sites. The company is also evaluating options to open additional plants and hire more domestic workers to reduce its exposure to international tariffs.
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While tariffs have already been imposed on imports from Canada, Mexico, and China, President Trump has publicly indicated that the European Union may be next.
“Am I going to impose tariffs on the European Union? Do you want the truthful answer or should I give you a political answer? Absolutely,” Trump said in January.
“Absolutely. The European Union has treated us so terribly.”
The president has long criticized the EU’s trade practices and has emphasized the need for reciprocal trade policies.
In December, Trump posted on Truth Social that European countries should take steps to address trade imbalances with the United States by purchasing more American energy. “Otherwise, it is TARIFFS all the way!!!” he wrote.
According to the Telegraph, Rolls Royce is actively reassessing its global supply chain and preparing to realign operations as a precaution.
One source familiar with the company’s planning said the firm was “tipping the balance towards the U.S.” to mitigate risks associated with rising tariffs.
“If you are making something in countries like China then you’ll be looking at whether you can do it in the US instead,” the source stated.
During a recent earnings call, Rolls Royce alerted investors to the potential financial impacts of “rising protectionism” and confirmed it is developing plans to respond.
The company’s statement to shareholders noted that tariffs against major trading partners “could lead to increased costs and consequently realign the global supply chain.”
The statement added, “Market exposures are being monitored, and we are adapting supply chain strategies to ensure resilience amid potential protectionist measures and evolving trade dynamics.”
President Trump has identified April 2 as a key date for his administration’s next phase in trade policy, calling it “liberation day.”
Speaking to reporters, Trump suggested that expanded tariffs would be used to address long-standing trade deficits.
“We’re getting back to some of the wealth that very, very foolish presidents gave away because they had no clue what they were doing,” Trump said.
“April 2nd is a liberating day for our country. We’re going to be getting back some of the wealth that very, very foolish presidents gave away. Because they had no clue what they were doing.” pic.twitter.com/QdeNbQr1Sb
— Bridgett Fertig (@LightOnLiberty) March 17, 2025
In preparation for the possibility of expanded tariffs, Rolls Royce has not ruled out the relocation of additional operations from the U.K. or other European countries.
The company’s focus remains on ensuring continued access to the U.S. market while maintaining stability in its production and supply chain.
No formal announcement has yet been made by Rolls Royce regarding specific plant openings or staffing expansions in the U.S., but internal planning is reportedly underway.
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