They want to dodge the tariffs.
British engineering company Rolls-Royce is reportedly planning to expand its manufacturing operations in the United States to sidestep tariffs imposed by President Donald Trump’s administration. According to the Daily Telegraph, the company is drafting plans to boost production in the U.S. and hire more American workers in response to these trade restrictions.
The aerospace and defense firm is reportedly considering shifting production away from countries affected by the trade war, such as China, Canada, and Mexico, where it currently employs around 6,000 people. A source mentioned that manufacturing in the U.S. is becoming a more attractive option for products currently made in countries like China.
In addition to relocating production from affected countries, Rolls-Royce is also evaluating the possibility of moving manufacturing from the UK and Europe if tariffs begin to affect those regions. The company informed shareholders that trade restrictions could lead to increased costs and may prompt adjustments to the global supply chain.
The U.S. market plays a critical role for Rolls-Royce, accounting for about one-third of its global revenue. Significant clients include the U.S. Department of Defense, Boeing, and Lockheed Martin. In 2022, the company generated approximately £5.94 billion from its North American operations, highlighting the importance of maintaining a strong presence in the U.S.
Rolls-Royce is among several companies considering a shift to U.S.-based production in response to the Trump administration’s efforts to rebalance global trade. Other firms, such as Apple, Oracle, and Taiwan Semiconductor Manufacturing Co., have already announced significant investments in U.S. manufacturing, with car manufacturers like Honda, Hyundai, and Audi reportedly exploring similar moves.
