President Donald Trump is expected to say that Apple Inc. would invest an extra $100 billion on manufacturing in the U.S. This seems to be a direct response to the administration’s threats of tariffs. The new promise, which increases Apple’s total US investment commitment to $600 billion over the next four years, is part of a new manufacturing program that aims to move more of the company’s supply chain to the US.
A New Manufacturing Program to Reshore Supply Chains
A White House official says that the new program’s goal is to make “additional critical components domestically.” Earlier this year, Trump said he would put a tax of at least 25% on Apple if it didn’t transfer iPhone production to the US. Taylor Rogers, a spokesman for the White House, said the announcement was a triumph for the “America First economic agenda.” She claimed it will “help bring back the production of important parts to protect America’s economic and national security.”
Apple has not yet said anything about the news.
A History of Investments and Negotiating Tariffs
Under President Trump, Apple has promised to make big investments before. The corporation said earlier this year that it would spend $500 billion in the US over the next four years. This promise includes building a new server factory in Houston, a supplier academy in Michigan, and investing more money with current domestic suppliers. During Trump’s first term, Tim Cook, the CEO of Apple, was able to get tariff exemptions for the company’s products. Analysts think that the new promise could help Apple avoid future tariffs that would lower profit margins and hike prices for consumers.
The news comes as the Trump administration is ready to put a new tax on all goods that have semiconductor chips in them and puts tariffs on dozens of trading partners based on their country. This is part of a bigger campaign by Trump to gain major investments from corporations and other countries, including collaborations with tech titans like Oracle, SoftBank, and OpenAI for AI data centers, and a major deal with Nvidia to develop AI infrastructure in the US.