US President Donald Trump is set to announce that Apple Inc. will commit an additional $100 billion toward domestic manufacturing, in what is being seen as a major boost to US production amid escalating trade tensions.
The move comes as the tech giant looks to avoid increased tariffs on its flagship products, particularly the iPhone.
According to a White House official, the new program will aim to bring more of Apple’s supply chain to the United States and assemble additional critical components domestically, as reported by foreign media. Apple CEO Tim Cook is expected to attend the event.
White House hails ‘America first’ win
“President Trump’s America First economic agenda has secured trillions of dollars in investments that support American jobs and bolster American businesses,” White House spokesperson Taylor Rogers said. “Today’s announcement with Apple is another win for our manufacturing industry that will simultaneously help reshore the production of critical components to protect America’s economic and national security.”
Apple had previously committed to spending $500 billion in the US over four years, covering a new server plant in Houston, a supplier academy in Michigan, and expanded spending with existing domestic suppliers. With the new pledge, Apple’s total US investment will climb to $600 billion, the White House said.
Following reports of the announcement, Apple shares rose by as much as 3.6 per cent on Wednesday, marking the stock’s biggest single-day gain in nearly three months.
Tariffs on India escalate over Russian oil purchases
The announcement coincides with Trump signing an executive order imposing an additional 25 per cent tariff on goods imported from India, citing the country’s continued oil trade with Russia. This comes on top of a 25 per cent country-specific duty already set to take effect Thursday.
Apple still faces manufacturing pressure
Despite the investment, Apple stops short of the full manufacturing relocation Trump has sought. Earlier this year, the president threatened to impose a 25 per cent tariff on Apple products if iPhone manufacturing didn’t shift to US soil. Administration officials have floated the idea that Apple could increase domestic assembly using robotics.
The company reported last week it absorbed an $800 million tariff impact in the June quarter and expects a $1.1 billion hit in the September quarter, barring further policy shifts.
