UK engineering giant Rolls-Royce reaffirmed confidence in its 2025 profit targets on Thursday, saying it expects to offset the impact of global trade tariffs through internal mitigation efforts.

Despite escalating tensions from the U.S.-China trade war, CEO Tufan Erginbilgic said the company remains on track to deliver underlying operating profit of £2.7–£2.9 billion next year.

“We expect to offset the impact of announced tariffs on our business through the mitigating actions we are taking,” Erginbilgic said ahead of the company’s annual general meeting.

Trade War Threat Looms Over Industry

Rolls-Royce cited growing uncertainty for global industry as the U.S., under President Donald Trump, imposes tariffs as high as 145% on Chinese goods, with Beijing retaliating at 125%. While Rolls-Royce is not at the center of these tariffs, it warned of indirect risks to global growth and inflation.

Global Footprint Shields Against Shock

With major facilities in the U.S., UK, Germany, and China, Rolls-Royce is leveraging its diversified global presence to weather geopolitical shocks. It supplies engines for Airbus widebody jets and Boeing’s 787 Dreamliner, and is currently implementing a broad transformation plan to boost profitability and operational agility.

Key & Summary Points:

• Rolls-Royce remains confident in 2025 earnings forecast

• Global tariff risk mitigated by cost control and transformation strategy

• U.S.-China trade war adds macroeconomic uncertainty

• Manufacturing footprint across U.S., UK, Germany, and China enhances resilience

• Target: £2.7B–£2.9B operating profit in 2025