British auto manufacturing giant Rolls Royce is reportedly planning to increase its manufacturing production in the United States in order to avoid President Donald Trump’s tariff plans.
According to a report from the Daily Telegraph, the U.K.-based firm is drawing up emergency contingency plans in order to avoid potential tariffs implemented by President Trump. While Trump has imposed tariffs on goods imported from Canada, Mexico and China, he has yet to impose any on the European Union or the U.S., though he has suggested that he will do so in the future.
“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” the president told reporters back in January. “Absolutely. The European Union has treated us so terribly,” Trump stated, reaffirming his longstanding concerns about the bloc’s trade practices.
In December, Trump called on European nations to rectify trade imbalances with the United States by purchasing more American energy. “Otherwise, it is TARIFFS all the way!!!” Trump posted on Truth Social.
Rolls Royce is hoping to prepare for the event of tariffs by drafting contingency plans that include hiring more U.S. workers and opening more plants in the country, the Daily Telegraph reported. The company is also exploring ways to move some of its current manufacturing operations in Mexico, China and Canada to the United States, where it employs 6,000 workers across 11 sites.
In an earnings call earlier this month, Rolls Royce warned investors about “rising protectionism” in response to Trump’s tariffs and confirmed that they were working on plans to lessen the effects.
One source told the outlet that the engineering giant was “tipping the balance towards the U.S.” in order to respond to 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,” they said.
President Trump has hinted that he will indeed be expanding tariffs on April 2, which the president has declared as “liberation day.” The administration will seek to offset global trade imbalances by unleashing reciprocal tariffs on nations beyond the three currently affected. “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 told reporters last week.
In addition to plans to divest from Canada, Mexico and China, Rolls Royce has not ruled out additional moves from U.K. and European sites in order to avoid Trump’s tariffs. In a warning to shareholders, Rolls said tariffs against key trade partners “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.”
