Rolls-Royce shares recover after early trading crash
The share price at Derby manufacturer Rolls-Royce continued to tumble on Monday morning (April 7) as Trump’s tariffs spooked investors.
At 10am, shares in Rolls were trading for just over 613p – down almost 7% on the day. The company’s share price has now dropped by over 15% in just five days.
However, Monday afternoon brought better news for the Derby giant as its share price recovered to almost 638p – down 3% on the day.
The stock market bloodbath has all but wiped out Rolls’ renaissance this year, which had seen its share price rise to record level in late February.
As a key exporter of aircraft and marine engines, Rolls-Royce’s operations are connected to the global supply chain, which is vulnerable to the shock of the US President’s tariffs.
This has made the company particularly susceptible, as tensions between the US and China triggered concerns about the impact on international trade.
The turbulence was sparked by a series of tariff announcements, including a 34% retaliatory tariff from China and a 20% levy on European imports to the US, which President Trump justified by saying that the US had been “taken advantage of” for years.
Last month, it emerged that Rolls was ramping up its production in the US to try and counter the damage done by Trump’s trade war with the rest of the world. According to reports, the company is looking at how much production can be shifted to the US.
