Trump, Apple announcing new $100 billion US Investment

Earlier this year, Trump warned that he would hit Apple with a tariff of at least 25% if it didn’t move manufacturing of the iPhone to the US,

 
President Donald Trump will announce that Apple Inc. will commit to spend another $100 billion on domestic manufacturing, the latest pledge by the tech giant to increase US production of its products as it seeks to avoid punishing tariffs on its flagship iPhones.

The announcement at the White House on Wednesday includes a new manufacturing program designed to bring more of Apple’s supply chain to the US, with an eye toward manufacturing additional critical components domestically, according to a White House official who detailed the announcement on the condition of anonymity.

“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 in a statement. “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 did not immediately respond to a request for comment.

Earlier this year, Trump warned that he would hit Apple with a tariff of at least 25% if it didn’t move manufacturing of the iPhone to the US, a day after meeting with Apple Chief Executive Officer Tim Cook at the White House.

Cook has led a push by Apple to win a carve-out for its iPhone product line, with phones currently primarily manufactured in China and India.

The company has previously announced it plans to spend $500 billion in the US over the next four years, which will include work on a new server manufacturing facility in Houston, a supplier academy in Michigan and additional spending with its existing suppliers in the country. Wednesday’s announcement will bring Apple’s cumulative commitment to $600 billion, the White House said.

The announcement comes with Trump readying plans to unveil a tariff on all products containing semiconductor chips as soon as next week. Separately, the president’s country-specific tariffs on dozens of trading partners are set to take effect on Thursday.

During Trump’s first term, Apple was able to win tariff carveouts for its products. If Cook is able to do so again, it could help the company avoid tariff costs that analysts expected to erode profit margins and increase consumer costs — or even offer a competitive advantage over foreign rivals like Samsung Electronics Co Ltd.