Washington , 7 August (H.S.): Apple is set to invest an additional $100 billion in the U.S., responding to pressure from President Donald Trump, who has emphasized the need for domestic production of Apple parts. This new investment builds on a previous commitment of $500 billion over four years. Trump's focus on Apple follows threats to impose tariffs on its products unless iPhone manufacturing shifts to the U.S. Tim Cook, Apple's CEO, noted the company's commitment while indicating a desire to enhance domestic production to avoid tariffs.
During a White House event, Trump highlighted the plan to significantly increase investment in the Apple supply chain, including the creation of new data centers nationwide and a smart glass production line in Harrisburg, Kentucky, intended for use in iPhones and smartwatches. He praised Apple's move to domestic production as a way to avoid potential tariffs on components like chips and semiconductors, suggesting that other companies could similarly evade these taxes by investing in the U.S.
Cook, who supported Trump's inaugural committee with a $1 million donation, remarked that the initial $500 billion investment was already showing positive outcomes. He asserted that the new funding would further enhance production in America for essential components used in Apple products globally. Following the announcement, Apple's shares saw a significant rise of over 5%.
The White House described Apple's pledge as indicative of Trump's successful policies encouraging businesses to invest in the U.S., contributing to national economic security by bringing critical component production back to America. Notably, Apple traditionally sourced much of its manufacturing from China but adopted new strategies in response to tariff changes, including shifting some production to India and Vietnam.
Despite these adjustments, Apple faced significant tariffs, recently paying over $800 million in border taxes. With the increasing tariffs on Indian products, concerns lingered. Cook emphasized Apple's long-term U.S. engagement and investment partnerships, citing plans for a manufacturing academy in Michigan and procurement of rare earth magnets from U.S. supplier MP Materials. While positive about the investments, analysts caution that achieving complete U.S. production remains a complex challenge.
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Hindusthan Samachar / Jun Sarkar
