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Aircraft engine manufacturer Rolls-Royce is confident that it will achieve its
financial targets for this year, despite the uncertainty caused by US
President Donald Trump's import duties. The British company calls the trade
tariffs "manageable" and expects to be able to offset them through "mitigating
measures", such as cost savings.
 
"We are closely monitoring the potential indirect impact on economic growth
and inflation and will continue to take appropriate measures," CEO Tufan
Erginbilgic said in a statement ahead of the company's annual meeting on
Thursday. Rolls-Royce, which builds engines for the Airbus A350, A330neo and
some Boeing 787s, continues to expect an operating profit of £2.7 billion, or
around €3.2 billion, this year.
 
Trump's tariffs are forcing the airline industry to adapt after decades of
being shielded from tariffs. European aircraft manufacturer Airbus also stuck
to its full-year forecast on Wednesday. The world's largest planemaker still
expects to deliver around 820 planes, down from 766 last year. But that
forecast excludes the tariffs and assumes there will be "no additional
disruption to global trade or the global economy," Airbus warned.
 
However, many airlines have already indicated that they are not prepared to
pay the additional costs for aircraft resulting from the tariffs. In addition,
China has ordered its airlines to stop buying aircraft from the American
aircraft manufacturer Boeing and is sending undelivered aircraft back to
Seattle.

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