WASHINGTON: President Donald Trump announced on Wednesday (Aug 6) that Apple will invest an additional US$100 billion in the United States, a move which will expand the company’s domestic investment commitment and could help it sidestep potential tariffs on iPhones.
The new pledge brings Apple’s total investment commitment in the US to US$600 billion. Earlier this year, the company had announced it would invest US$500 billion and hire 20,000 workers across the country over the next four years.
The announcement centres on expanding Apple’s supply chain and advanced manufacturing footprint in the US, but still falls short of Trump’s demand that Apple begin making iPhones domestically.
“Companies like Apple, they’re coming home. They’re all coming home,” Trump told reporters in the Oval Office, moments after Apple CEO Tim Cook gave him a US-made souvenir with a 24-karat gold base.
“This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America,” Trump added.
Asked if Apple could eventually build entire iPhones in the US, Cook noted that many components such as semiconductors, glass and Face ID modules are already made domestically, but said that final assembly will remain overseas “for a while”.
While the investment pledge is significant, analysts say the numbers align with Apple’s typical spending patterns and echo commitments made during both the Biden administration and Trump’s previous term.
In May, Trump had threatened Apple with a 25 per cent tariff on products manufactured overseas, a sharp reversal from earlier policy when his administration had exempted smartphones, computers and other electronics from rounds of tariffs on Chinese imports. Trump’s effort to reshape global trade through tariffs cost Apple US$800 million in the June quarter.
“Today is a good step in the right direction for Apple, and it helps get on Trump’s good side after what appears to be a tension-filled few months in the eyes of the Street between the White House and Apple,” said Daniel Ives, an analyst with Wedbush Securities.
