President Trump's Tariff Talk Leads Another Automaker To Shift Production To US: Reports | WLT Report Skip to main content
We may receive compensation from affiliate partners for some links on this site. Read our full Disclosure here.

President Trump’s Tariff Talk Leads Another Automaker To Shift Production To US: Reports


When President Donald Trump forecasted a second term that put America’s interest first, there was considerable skepticism about his ability to level the international playing field.

Since he has been advancing a tough trade policy that involves the threat of increased tariffs on some of America’s closest partners around the globe, several companies have responded by shifting their focus back to the United States.

One such example is ultra-luxury British automaker Rolls-Royce, which also produces engines for the aerospace industry. The company recently confirmed it would be shifting some of its operations stateside in an effort to avoid the increased cost of potential tariffs.

As Breitbart reported:

ADVERTISEMENT

According to the report, the aerospace and defence company is considering shifting production from countries impacted by the trade war, such as China, Canada, and Mexico, where it currently has around 6,000 workers.

A source told the British broadsheet, “If you are making something in countries like China, then you’ll be looking at whether you can do it in the US instead.”

Additionally, Rolls is also considering potentially shifting production from the UK and Europe should tariffs threaten its manufacturing sites in the regions.

In a message to shareholders, the firm said that trade restrictions “could lead to increased costs and consequently realign the global supply chain”.

Automakers could face a particularly acute impact from tariffs, leading several to reach assessments similar to that of Rolls-Royce:

The Telegraph also reported on Rolls-Royce’s latest business strategy:

Rolls-Royce is preparing to ramp up production in the US as it seeks to counter damage wrought by Donald Trump’s escalating trade war.

ADVERTISEMENT

The UK engineering giant is drawing up emergency contingency plans to lessen the impact of tariffs, which is likely to involve hiring more US workers and expanding its North American operations.

Bosses are racing to complete a review after the US president slapped levies on Canada, China and Mexico, while also issuing threats against the UK and Europe.

To avoid the most damaging effects of the trade war, Rolls is exploring how much production can be transferred from the targeted countries to the US, where it employs 6,000 workers across 11 sites.

Here’s some additional coverage of Trump’s ongoing trade negotiations:



 

Join the conversation!

Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!

Leave a comment
Thanks for sharing!