Rolls-Royce explores shifting engine-making to US to counter Trump tariffs

 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.

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.

This will allow Rolls to take on more new work without being subject to tariffs.

Rolls warned investors earlier this month about the impact of “rising protectionism”, which has been brought about by Mr Trump’s return to the White House.

A source said the Derby-based manufacturer was “tipping the balance” towards the US in response to the 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.

This will no doubt be seen as a victory for Mr Trump, who has said tariffs will boost American manufacturing, protect jobs and improve the economy.