Rolls-Royce’s stock price fell by as much as 10%, hitting a one-month low of 682p. The decline follows growing concerns over escalating global trade disputes, particularly between the US and China, which have put significant pressure on markets.
Based in Derby, Rolls-Royce is a major exporter of aircraft and marine engines, making it highly vulnerable to disruptions in international trade. The new tariffs announced by both the US and China have intensified concerns. China has imposed a 34% retaliatory tariff on US goods, while the US introduced a 20% levy on European imports. The tensions surrounding these moves have triggered fears about the broader impact on global trade, with companies like Rolls-Royce at risk due to their extensive global supply chains.
The UK market also saw significant losses, with the FTSE 100 dropping nearly 4% and the FTSE 250 losing over 3%. European markets were similarly affected, with Germany’s DAX and France’s CAC 40 both seeing declines of 5% and 4%, respectively.
In an effort to mitigate the effects of the ongoing trade war, Rolls-Royce announced plans to shift some of its engine production to the US. This strategy aims to reduce the impact of US tariffs, with the company exploring the potential for relocating some of its production to American facilities.
