NEW: Another Major Car Manufacturer Will Shift Production To The U.S.

British auto manufacturing giant Rolls Royce is reportedly planning to increase its manufacturing production in the United States in order to avoid President Donald Trump’s tariff plans.

According to a report from the Daily Telegraph, the U.K.-based firm is drawing up emergency contingency plans in order to avoid potential tariffs implemented by President Trump. While Trump has imposed tariffs on goods imported from Canada, Mexico and China, he has yet to impose any on the European Union or the U.S., though he has suggested that he will do so in the future.

“Am I going to impose tariffs on the European Union? Do you want the truthful answer or should I give you a political answer? Absolutely” the president told reporters back in January. “Absolutely. The European Union has treated us so terribly,” Trump stated, reaffirming his longstanding concerns about the bloc’s trade practices.

In December, Trump called on European nations to rectify trade imbalances with the United States by purchasing more American energy. “Otherwise, it is TARIFFS all the way!!!” Trump posted on Truth Social.

Rolls Royce is hoping to prepare for the event of tariffs by drafting contingency plans that include hiring more U.S. workers and opening more plants in the country, the Daily Telegraph reported. The company is also exploring ways to move some of its current manufacturing operations in Mexico, China and Canada to the United States, where it employs 6,000 workers across 11 sites.

In an earnings call earlier this month, Rolls Royce warned investors about “rising protectionism” in response to Trump’s tariffs and confirmed that they were working on plans to lessen the effects.

One source told the outlet that the engineering giant was “tipping the balance towards the U.S.” in order to respond to 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

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