Tuesday, March 25, 2025

Rolls-Royce considers US expansion to counter trade tariffs

Rolls-Royce is evaluating a shift in engine production to the US as a strategic response to potential trade tariffs under Donald Trump’s policies. The company, headquartered in Derby, is increasing US production capacity to safeguard its supply chain and maintain competitiveness in key markets.

While no immediate impact on UK operations is expected, Rolls-Royce is reviewing its global production footprint. A company spokesperson confirmed that it is exploring ways to optimise its supply chain for US customers. The firm has not ruled out further changes to its UK manufacturing base.

The review follows strong financial performance, with underlying profit rising from £1.26 billion to £2.29 billion last year. Rolls-Royce forecasts adjusted operating profit of £2.7 billion to £2.9 billion in 2025 and has raised its mid-term targets to between £3.6 billion and £3.9 billion. CEO Tufan Erginbilgic emphasised the company’s focus on accelerating growth and efficiency.

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