Trump and Apple Announce $100B US Investment: Key Details

Apple and Trump Announce Major U.S. Manufacturing Investment

Apple CEO Tim Cook made a significant appearance at the White House, joining President Donald Trump to announce a $100 billion investment in U.S. manufacturing. This move is part of Apple's ongoing efforts to address growing pressure from the Trump administration, which has been urging the tech giant to increase domestic production of its flagship products like the iPhone.

The investment includes a new manufacturing program aimed at expanding the number of Apple components produced within the United States. This initiative could help Apple avoid more severe import levies that have been a concern for the company. With rising tariffs on imported goods, Apple is seeking ways to mitigate the financial impact on its operations and consumers.

During the event, Cook highlighted the collaboration with 10 American companies, including chipmaker Broadcom, chip equipment maker Applied Materials, Texas Instruments, rare earth magnets producer MP Materials, and Corning. These partnerships are expected to support the production of components used in Apple products sold globally. Cook emphasized that as part of its expanded partnership with Corning, all cover glass for Apple's iPhones and Apple Watches will be made in the U.S. for the first time, specifically at a Corning facility in Kentucky.

President Trump praised the announcement, stating it was a significant step toward ensuring that iPhones sold in the United States are also made in America. He also credited his "America First" economic agenda for securing trillions of dollars in investments that support American jobs and bolster local businesses. A White House spokesperson noted that this partnership would help reshore critical component production, enhancing both economic and national security.

Apple’s stock saw a positive reaction, jumping over 5% ahead of the announcement. However, the company has still experienced a nearly 15% decline in value since the start of the year, driven by concerns about its progress in artificial intelligence and the increasing burden of tariffs.

Pressure from Trump on Tariffs

Apple has faced intense pressure from Trump in recent months to shift more of its production to the U.S. In May, the president threatened to impose a 25% tariff on phones sold in the U.S. if Apple did not act to bring more operations back to the country. While the latest investment marks an increase in Apple’s U.S. commitments, it does not promise a full shift to making iPhones in the U.S., a move that analysts have called a "non-starter" due to the high costs involved.

Despite this, the expansion of Apple’s U.S. commitments, following a $500 billion pledge earlier this year, could help ease some of Trump’s concerns. Apple has already absorbed $800 million in tariff costs during the fiscal third quarter and expects a larger $1.1 billion hit this quarter, assuming no changes in tariff levels.

Cook mentioned that after shifting some production from China, a majority of iPhones sold in the U.S. now come from India, while most Macs and other Apple products sold domestically are shipped from Vietnam. The White House recently announced an additional 25% tax on imports from India, raising the overall rate on goods from the country to 50%.

This development underscores the complex relationship between Apple and the Trump administration, as the company navigates the challenges of global supply chains and trade policies. The latest investment represents a strategic move to align with the administration's goals while managing the financial implications of tariffs.