**London**: Rolls-Royce is strategising to increase US production capacity in response to rising trade tensions and tariffs under President Trump. The British firm aims to hire more American workers and realign its operations to avoid costs associated with tariffs affecting key trading partners.
Rolls-Royce is making plans to increase its production capacity in the United States as a strategic response to the escalating trade tensions under President Donald Trump’s administration. Company executives are currently engaged in the formulation of emergency measures aimed at countering the adverse effects of rising protectionism, which has been exacerbated by recent tariff implementations.
According to a report from The Telegraph, the British engineering behemoth is developing plans that will likely include hiring additional American workers and expanding its operations across North America. Currently, Rolls-Royce employs about 6,000 individuals in the U.S., distributed across 11 different sites.
In light of recent tariffs imposed on key trading partners, including Canada, China, and Mexico, and with indications that similar taxes could soon target the UK and Europe, company executives are conducting a strategic review. This review is focused on how much production can be shifted away from countries facing tariffs and instead be relocated to the United States. The aim is to circumvent potential tariffs on their products, thereby allowing the company to accept more new orders without incurring additional costs.
A source close to the company indicated to The Telegraph that Rolls-Royce is “tilting the balance” towards relocating a substantial portion of its production to the U.S. This move is seen as a potential alignment with Trump’s stated economic policies, which are designed to bolster American manufacturing, protect jobs, and enhance the domestic economy. Trump has publicly asserted that tariffs will help reclaim wealth that past administrations have permitted to flow out of the country. “We are getting back part of the wealth that very, very foolish presidents have given away because they had no idea what they were doing,” he remarked last week.
Despite these intentions, Rolls-Royce has stated that any production redirection will primarily focus on the countries directly affected by tariffs. However, they have also highlighted that they could consider transferring operations from their UK and European locations depending on the expansion of the trade conflict.
In a recent communication to shareholders, Rolls-Royce warned about the potential consequences of tariffs on its key trading partners, stating that these measures could lead to increased costs and necessitate a realignment of its global supply chain. “Market exposures are being monitored, and we are adapting our supply chain strategies to ensure resilience against potential protectionist measures and evolving trade dynamics,” Rolls representatives noted.
A feasibility study is currently underway to assess how much production capacity can be realistically increased in the U.S. “It will allow us to look at what is possible,” a source within the company commented. This study is part of broader efforts, highlighted by Rolls-Royce’s revenue report showing a significant financial performance in North America, where the company generated £5.94 billion last year, up from £4.67 billion the previous year. Notably, the U.S. market constitutes approximately one-third of Rolls’ overall revenue, with substantial clients including the U.S. Department of Defense, Boeing, and Lockheed Martin. The nature of its supply chain indicates that much of the manufactured goods in the U.S. are aimed at American customers, thus shielding them from the impacts of export tariffs.
In recent years, the company has made substantial investments in its U.S. operations, exemplified by a significant $1 billion investment in its Indianapolis facility.
Source: Noah Wire Services
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