Rolls-Royce share price pared back some of the losses made earlier this month as Donald Trump’s trade war eased. After bottoming at 560p on April 7, it has soared to a high of 790p on Thuesday, a few points below the all-time high of 815p. So, will the stock keep rising and possibly hit 1,000p as some analysts estimate?

Rolls-Royce business is doing well

Rolls Royce is a top company that is involved in three key industries like civil aviation, power, and defense. 

Its civil aviation business involves manufacturing popular engines like the Trent series that is used for aircraft like Boeing 787, Airbus A380, Airbus A350 XWB, and Airbus A330. 

The company also builds engines in the pearl series that are mostly used by private jets like Gulfstream and Bombardier. Its AE series engines are turboprop, turbofan, and turboshaft that are mostly used by regional aircraft. 

Rolls-Royce makes its money in civil aviation in two main ways: engine sales and long-term service contracts. In some cases, the company is usually sells its aircraft engines at a breakeven or a loss, and then enters long-term service contracts with airlines. 

It uses the power-by-the-hour and the TotalCare options. In the power-by-the-hour approach, airlines pay the company for every hour that they operate their engines. This ensures that the maintenance fees are spread out over time. 

The company also builds engines for other industries, like the military and power solutions for data centers. Analysts believe that its data center business will continue doing well over time as demand for artificial intelligence solutions rose.

RR stock jumps after Trump pauses its tariffs

The main reason why the Rolls-Royce stock price surged is that Donald Trump paused his Liberation Day tariffs on some countries. 

Rolls-Royce is exposed to these tariffs in several ways as a global manufacturer. First, the tariffs increase its cost of doing business. For example, Trump has already imposed a 25% tariff on steel and aluminum, two metals that the company uses in its manufacturing.

Also, Trump placed a universal tariff on all goods entering the United States, where the company has substantial operations. These tariffs would make its cost of doing business more expensive and worsen the supply chain concerns it has had in the past few years.

The tariffs would also affect aircraft orders, especially from Boeing, a company that has come under pressure in over five years.

Read more: Will the surging Rolls-Royce share price 1,000p in 2025?

Most importantly, there is a likelihood that these tariffs would raise costs and affect the civil aviation by leading to lower demand. 

Still, there is a likelihood that the company’s business is strong enough to sustain its operations. For one, its recent financial results showed that it has already achieved its mid-term targets ahead of schedule, meaning that shareholders may receive higher dividends going forward.

The full-year results showed that its operating profits rose to £2.5 billion, while its margins jumped to 13.8%. Its free cash flow came in at £2.4 billion. It paid 6p per share in dividends, a figure that may keep growing.

Rolls-Royce share price analysis

RR stock chart by TradingView

The daily chart shows that the RR stock price crashed to 562p as the tariff crisis escalated. It then bounced back and moved to almost 800p after Trump paused some of these tariffs. It has remained above the 50-day and 100-day moving averages, a sign that bulls remain in control for now. 

Therefore, more upside, potential to the key resistance at 1,000p, will be confirmed if the stock rises above the key resistance level at 817p, the highest point this year. Moving above that level will validate the bullish outlook by confirming that there are more buyers left in the market.

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European markets posted sharp gains on Thursday after US President Donald Trump unexpectedly postponed a new round of tariffs on dozens of countries, including the European Union.

The decision sent relief rippling through financial markets, with the FTSE 100 surging by more than 4% to mark its biggest daily gain in months.

However, the buoyant mood on London’s blue-chip index was tempered by steep declines in supermarket shares.

Tesco and Sainsbury’s emerged as the day’s biggest laggards, weighed down by mounting concerns over a deepening price war in the sector.

Tesco warns of intense competition and falling profits

Tesco shares tumbled by 7%, or 24.4p, to 310.8p, their lowest level since July, after the retailer cautioned that profits would likely fall this year as it girds for battle in an increasingly cutthroat market.

The company forecast operating profits between £2.7 billion and £3 billion for the current financial year, well below City expectations of around £3.2 billion.

Britain’s largest grocer said it was preparing for an “intense” competitive environment and planned to maintain flexibility to defend its market share.

Chief executive Ken Murphy highlighted Tesco’s intention to continue investing in value for shoppers, even as inflationary pressures and rising operating costs bite.

“In the last few months, we have seen a further increase in the competitive intensity of the UK market,” the company noted in its outlook.

“We are providing guidance that gives us flexibility and firepower to respond to current market conditions.”

Tesco’s warning also dragged down shares in rival Sainsbury’s, which fell by 5%, or 12p, to 223.8p.

Asda’s aggressive discounting adds to pressures

The price war fears have been fuelled by a renewed push from Asda, led by chairman Allan Leighton, who earlier this year unveiled the supermarket’s largest round of price cuts in 25 years under its “Rollback” campaign.

This aggressive pricing strategy, aimed at fending off the rapid advance of discount chains Aldi and Lidl, is raising the stakes for established players.

“Supermarkets may be about to embark on a trade war of their own,” said Richard Hunter, head of markets at Interactive Investor. “

“Asda’s aggressive assault on prices, if it fully happens, will likely shave profits across the sector.”

Hunter noted that Tesco shares had already fallen by 10% this year before Thursday’s trading, amid growing expectations and an uncertain economic backdrop. He cautioned that headwinds were set to persist.

Despite the challenges, Tesco reported a 10.6% rise in adjusted operating profits for the previous financial year to £3.128 billion, with group sales climbing 3.5% to £63.64 billion.

The retailer also increased its market share in the UK to 28.3%, its highest level since 2016.

Looking ahead, Tesco said it was targeting cost savings of around £500 million to offset rising expenses, including a £235 million increase in National Insurance contributions.

Analysts say Tesco still well placed despite risks

While investors reacted nervously to Tesco’s cautious outlook, some analysts suggested the company remains well positioned to weather the storm.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown said, “Fears of a price war that could squeeze profitability have weighed on sentiment across the sector recently, but it hasn’t materialised yet.”

“Even if a price war materialises, Tesco reckons it’s in the most competitive position it’s been in for many years, helped by the Aldi price match and Clubcard prices keeping customers loyal. And despite recent headlines, Asda doesn’t appear to have the financial firepower to disrupt this dynamic.”

Echoing this view, Hunter added: “The upcoming battle is for Tesco to lose rather than Asda to win. The fact remains that the group’s market share has risen yet again to 28.3%, which is equivalent to that of its nearest rivals, Sainsbury and Asda, combined.”

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Barry Callebaut, a Swiss chocolate maker, lowered its annual sales volume forecast on Thursday due to “unprecedented volatility” in cocoa bean prices. 

This development led to a significant drop in the company’s shares, which were down almost 20%, on track for their largest-ever one-day decline, Reuters reported on Thursday.

The world’s largest chocolatier, a major supplier to key food producers such as Nestle, the maker of KitKat, has released a forecast predicting a decline in its cocoa sales volume. 

Volumes to fall

The company anticipates that the volume of cocoa sales for the financial year ending on August 31 will decrease by a percentage in the mid-single digits. 

This projection highlighted a potential shift in the cocoa market and could have implications for both the chocolatier and the broader food industry.

The company had initially forecast a minor decrease in sales volume, predicted to be in the low single-digit percentage range. 

This projection was influenced by the prevailing market conditions, particularly the exceptionally high costs of raw materials. 

The high prices were expected to impact consumer purchasing power and, consequently, the overall sales figures.

“The short term pain from the unprecedented cocoa price spike and volatility is worse than we anticipated for the company,” Kepler Cheuvreux’s analyst Jon Cox was quoted in the Reuters report.

Cox added that the decline in cocoa prices should improve chocolate demand and ease the pressure on Barry Callebaut’s balance sheet and financials.

Cocoa prices 

Cocoa futures, traded in London, are currently priced at approximately 6,096 pounds ($7,839.5) per metric ton. 

This represents a significant decrease from the yearly high of 9,290 pounds reached in January. 

This price drop can be attributed to a “perfect storm” of factors impacting cocoa farmers in Western Africa, a region responsible for approximately 70% of the global cocoa supply. 

These factors primarily stem from climate change and long-standing issues with insufficient planning and resource allocation within the cocoa industry.

Climate change has had a profound impact on cocoa production in Western Africa. Changes in temperature and precipitation patterns have led to decreased yields, increased pest and disease pressure, and soil degradation. 

Environmental challenges have made it increasingly difficult for farmers to maintain consistent and profitable cocoa production. 

Additionally, years of insufficient planning and investment in sustainable farming practices have left the industry vulnerable to these climatic shifts. 

Farmers have lacked access to the resources and support needed to adapt to changing conditions and mitigate the impacts of climate change. 

Sales decline

Barry Callebaut saw a 4.7% decrease in sales volume to 1.08 million tons in the first six months of the year ending August 2025. 

This figure falls slightly short of the 1.11 million tons predicted by analysts in a company-provided consensus. 

The company’s ingredients are found in 25% of chocolate and cocoa products consumed globally.

The company reaffirmed its projection of a double-digit percentage increase in constant currency recurring core earnings (EBIT) for the year. This comes after a 2.9% decline to 329.6 million Swiss francs ($386.0 million) in the first half of the year.

The company confirmed that it is still aiming for 250 million francs in annual savings under the transformation plan. 

However, due to the “disruptive environment”,  the “BC Next Level” savings will be reflected in earnings 12 months later than expected.

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Apple has airlifted around 600 tonnes, or about 1.5 million iPhones, from India to the United States, chartering cargo flights in a race to beat newly imposed tariffs under President Donald Trump’s latest trade measures, Reuters reported, citing people familiar with the matter.

The extraordinary logistical effort highlights the lengths to which the tech giant is going to shield its sales in one of its biggest markets.

Analysts have warned that prices for iPhones in the US could surge as tariffs on Chinese-made devices rise to 125%, far exceeding the 26% levy on Indian imports.

The Indian tariff, however, is currently paused under a 90-day reprieve announced by Trump this week.

“Apple wanted to beat the tariff,” said one of the sources involved in the planning, speaking on condition of anonymity given the sensitivity of the discussions.

How Apple lobbied with India for a “green corridor” for customs clearance

Apple is understood to have lobbied Indian authorities to drastically cut customs clearance times at Chennai airport from around 30 hours to just six, Reuters said.

This “green corridor” arrangement, inspired by similar processes in China, has allowed Apple to expedite the flow of high-value cargo from its Indian manufacturing hub.

Sources revealed that since March, at least six cargo planes, each capable of carrying 100 tons, have flown out of India carrying iPhones destined for the US market.

According to Reuters estimates, based on the weight of an iPhone 14 and its packaging, this amounts to roughly 1.5 million devices.

Apple, which sells more than 220 million iPhones annually worldwide, is increasingly relying on India as a manufacturing base.

Industry data indicates that around 20% of iPhone imports to the US now come from India, with the balance still largely sourced from China.

At the 54% tariff rate, the $1,599 cost of the top-end iPhone 16 Pro Max in the United States would have surged to $2,300, calculations based on projections by Rosenblatt Securities show.

Sunday shifts at Foxconn

To meet the surge in demand, Apple ramped up production at its Indian facilities, particularly at the largest Foxconn plant near Chennai, which has been operating even on Sundays—a typical day off in the country.

Last year, the plant produced about 20 million iPhones, including the latest iPhone 15 and 16 models.

Apple’s main suppliers in India, Foxconn and Tata, currently operate three factories in the country, with two more facilities under construction.

Foxconn’s shipments from India to the US soared in January and February, reaching $770 million and $643 million, respectively, far above the prior range of $110 million to $331 million in preceding months, according to trade data.

More than 85% of these shipments were delivered to major US hubs such as Chicago, Los Angeles, New York, and San Francisco.

India’s full capacity could meet 50% of US demand for iPhones

Bank of America analyst Wamsi Mohan has estimated that Apple could produce as many as 25 million iPhones in India this year.

While around 10 million units are earmarked for domestic sales, the remainder is likely to be exported, with much of it heading to the US.

“If Apple were to redirect all India-made iPhones to the US, it could meet about 50% of American demand for the device this year,” Mohan told the Wall Street Journal.

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US equities fell sharply on Thursday, reversing part of the prior session’s explosive rally, as investors weighed President Donald Trump’s partial tariff pause against lingering concerns over China and the broader economic outlook.

The Dow Jones Industrial Average dropped 629 points, or 1.6%, while the S&P 500 fell 2.1%.

The Nasdaq Composite tumbled 2.9%, with tech leaders dragging the index lower. Apple declined 3.8%, Tesla sank 5%, Nvidia lost 4%, and Meta Platforms shed 1.7%.

The rally to remember

Thursday’s sell-off followed a historic rally that sent the S&P 500 soaring more than 9% on Wednesday — its third-largest single-day gain since World War II.

The Dow logged its biggest percentage jump since March 2020, and the Nasdaq posted its second-best day on record, behind only January 2001.

Trading volume hit an unprecedented 30 billion shares, the highest level in at least 18 years.

The market euphoria was fueled by Trump’s announcement of a 90-day pause on most of his planned reciprocal tariffs, slashing rates for many countries to 10%.

Canada and Mexico were excluded from any new duties, while the European Union followed up Thursday with its own 90-day freeze on retaliatory tariffs against US goods.

Despite the short-term relief, the tariff rate on Chinese imports remains at a punitive 125%, underscoring the unresolved core of the trade dispute.

“They were getting yippy,” Trump said on Wednesday, referring to nervous investors. “I thought that people were jumping a little bit out of line.”

The market’s pullback reflects skepticism about how much relief the tariff pause truly provides, with some analysts warning that the reprieve is unlikely to offset broader pressures.

“The increase in China tariffs but delay in others leaves the effective tariff rate at 23%, at historical highs,” wrote Morgan Stanley chief US economist Michael Gapen. “Delays help, but do not reduce uncertainty.”

LPL Financial chief economist Jeffrey Roach echoed the sentiment, noting that the 90-day pause may not prevent further market turbulence. “Hard data from the early part of the year suggests the economy is slowing, irrespective of trade policy,” he said.

US inflation data

New inflation data released Thursday showed consumer prices rose 2.4% year-over-year in March, coming in below expectations of a 2.6% increase.

Core inflation, which excludes food and energy, rose 0.1% in March, easing from a 0.2% increase in February.

On a year-over-year basis, core inflation rose 2.8%—the slowest annual pace since March 2021.

While that may provide some room for the Federal Reserve to ease monetary policy, market participants appear to be waiting for more concrete signals before reassessing risk.

The data comes amid rising tensions between President Trump and Federal Reserve Chair Jerome Powell.

While Powell has maintained that rate cuts are unlikely without clear evidence of sustained disinflation, Trump has publicly called for immediate rate reductions.

In a recent speech, Powell expressed concern that the full implementation of Trump’s tariffs could rekindle inflationary pressures, further complicating the Fed’s policy path.

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