Apple plans to increase its investment in the U.S. by an additional $100 billion (£75 billion) as it faces pressure from President Donald Trump. The White House stated that this funding aims to encourage domestic production of Apple components and will supplement the company’s previous commitment to invest $500 billion over four years.
This announcement follows Trump singling out Apple earlier this year, threatening to impose tariffs on its products unless it moved iPhone manufacturing to the U.S. Apple CEO Tim Cook recently indicated that the company was looking to “do more” to avoid impending tariffs on its products.
During a formal announcement at the White House, Trump stated that part of the investment would involve “massively” increasing spending on Apple’s domestic supply chain. This includes establishing new data centers across the country and building a smart glass production line in Harrisburg, Kentucky, intended for use in iPhones and smartwatches.
Trump praised Apple for shifting production to the U.S., suggesting that this move would help the company avoid a proposed 100% tariff on chips and semiconductors. While he did not provide additional details about the new tariff plans, he noted that other companies could similarly evade these taxes by investing in the U.S.
Standing beside Trump, Cook, who donated $1 million to Trump’s inaugural committee, claimed that the initial $500 billion investment was “already yielding results.” He added that the new funding would enhance production of critical components for Apple products globally.
Analysts noted that any significant changes to Apple’s supply chain would take time, but the company’s commitment could lead to favorable treatment from the White House, given Trump’s focus on boosting domestic business investments. Following the announcement, Apple shares surged over 5%.
In a statement, the White House characterized Apple’s latest pledge as evidence that Trump’s policies are encouraging companies to invest more in the U.S. “Today’s announcement with Apple is another win for our manufacturing industry that will help reshore the production of critical components, protecting America’s economic and national security,” a spokesperson said.
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Historically, Apple has manufactured most of its products in China but has been adjusting its supply chain to mitigate tariffs. It has shifted some production to India and Vietnam, which face lower tariffs on exports to the U.S.
Despite this, Apple has incurred over $800 million in new border taxes in the last three months, reflecting Trump’s global tariffs. The company expects to pay an additional $1.1 billion in the coming months, even with exemptions granted to certain electronics.
With tariffs on Indian-made goods expected to rise to 50%, concerns are growing. On an investor call, Cook emphasized Apple’s commitment to the U.S. and its strategy of working with third parties for investments, referencing plans for a manufacturing academy in Michigan and a $500 million purchase of rare earth magnets from MP Materials.
Since Trump’s return to office, he has frequently highlighted major investment commitments from firms like Apple. However, analysts caution that the numbers often seem exaggerated, and there is no clear evidence of a broader trend. Paolo Pescatore, founder of PP Foresight, acknowledged Cook’s adept navigation through challenging times but questioned the feasibility of rapidly transitioning all production to the U.S.
SOURCE: BBC
