Apple is reportedly planning to increase its investments in the United States by an additional $100 billion, following pressure from the Trump administration to bolster domestic manufacturing.
According to the White House, these funds will incentivize companies to manufacture more Apple components within the U.S., supplementing the company’s previous commitment to invest $500 billion in the U.S. over a four-year period.
Apple has not yet issued an official statement.
During an investor call last week, CEO Tim Cook alluded to the company’s existing pledge and indicated its intent to “do more” amidst escalating tariffs that could impact its products.
Earlier this year, then-President Donald Trump specifically targeted Apple, threatening increased tariffs if the company did not relocate iPhone manufacturing to the United States.
Analysts suggest that significant changes to Apple’s supply chain would be a lengthy process, but the company’s commitment could potentially mitigate White House scrutiny, given Trump’s emphasis on fostering business investment within the U.S.
Shares saw an increase of over 4% in morning trading.
In a statement released Wednesday, the White House portrayed the firm’s latest commitment as evidence that Trump’s policies are successfully encouraging companies to invest more capital in America.
“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,” stated spokesperson Taylor Rogers.
Apple has historically manufactured the majority of its products in China.
The company avoided tariffs during Trump’s initial term by agreeing to increase investments in the U.S., a strategy coordinated with the White House.
However, it has been actively adapting since Trump initiated a new tariff dispute in January, imposing an additional 30% tariff on goods manufactured in China.
In response to these changes, Apple has been restructuring its supply chain, primarily shipping goods to the U.S. from India and Vietnam, which are subject to lower export tariffs.
Despite these adjustments, the company paid over $800 million in new border taxes on its products during the three months ending in June, reflecting Trump’s broad “reciprocal tariffs” implemented globally since April.
The company anticipates paying an additional $1.1 billion in the coming months, despite receiving exemptions for certain electronics from the White House in April.
With tariffs on Indian-made goods also poised to increase to 50%, Apple is actively seeking new strategies to mitigate these taxes.
The company is also preparing for potential repercussions from White House plans to introduce new tariffs specifically targeting the semiconductor industry.
Mr. Cook, who personally donated $1 million to Trump’s inaugural committee, is expected to announce the investment at the White House on Wednesday.
During the investor call, Mr. Cook emphasized Apple’s presence in the U.S. and its long-standing strategy of collaborating with “third parties” to facilitate investments.
He highlighted previously announced plans to launch a “manufacturing academy” in Michigan and a pledge to invest $500 million in MP Materials, which is working to increase the production of rare earth elements in the United States. The U.S. government has also acquired a stake in MP Materials, committing to a minimum price for its output.
Since returning to office, Trump has frequently promoted high-profile investment commitments from companies like Apple. Analysts suggest that the figures cited often appear inflated and there is no concrete evidence of a broader trend.
Paolo Pescatore, founder of PP Foresight, commended Mr. Cook for effectively navigating Apple through “turbulent times,” but noted that the implications of the investment for the diverse components of Apple devices and their production locations remain to be seen.
“Certainly if you look at the case today, it’s impossible to think now everything could just suddenly be produced, manufactured and put together in the US overnight,” he said.
India, which now faces among the highest tariff rates imposed by the US, called the levy “unjustified and unreasonable”.
Trump’s tariff threats and social media outbursts have raised concerns about the state of India-US relations.
The sweeping secondary tariffs could cut the flow of Russian oil and gas to global markets.
The US president threatened to “substantially” raise tariffs against India over its purchase of oil from Russia.
There are pressures on both sides to give businesses a reprieve, but the tone remains markedly downbeat.