President Donald Trump on Wednesday announced another $100 billion (AU$154bn) investment by Apple to expand manufacturing in the U.S., adding to a $500 billion commitment announced earlier this year by Tim Cook featuring plans for a new factory in the country and tens of thousands of new jobs.
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Key Takeaways
- Trump’s announced a new “American Manufacturing Program” that will bring more of Apple’s supply chain into the U.S., with plans to manufacture critical components domestically.
- The president also said the U.S. will place “approximately 100%” tariff rates on chips and semiconductors, adding if companies are building in the U.S., “there will be no charge” on the tech supplies.
- Cook announced plans in February for Apple’s $500 billion investment that included a doubling of its “Advanced Manufacturing Fund” to $10 billion, building a factory in Houston and a training facility in Michigan while adding 20,000 new jobs.
- Cook said under the new manufacturing plans, all iPhones and Apple Watches sold across the world will contain coverglass made in Kentucky.
- Shares of Apple closed up 5% to $213.25 after the company’s latest U.S. investment was first reported by Bloomberg.
- Apple did not immediately respond to a request for comment.
Crucial Quote
“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,” White House spokesperson Taylor Rogers told Forbes in a statement.
Tangent
Trump on Wednesday said he would double the U.S. tariff rate on India to 50% because the country continues to purchase Russian oil. In a call last week with analysts, Cook said a “vast majority” of iPhones sold in the U.S. come from India, noting Apple would “obviously try to optimize our supply chain” and “ultimately, we will do more in the United States.” In May, Trump wrote on Truth Social that he “long ago” told Cook he expected Apple’s iPhones to be manufactured in the U.S., “not India, or anyplace else.” Trump warned Apple would pay a 25% tariff unless the company shifted its production domestically.
Key Background
Trump has pressured companies to increase production in the U.S. in the wake of his wide-reaching tariffs in recent months. He announced a $100 billion investment in AI data centers from Oracle, SoftBank and OpenAI earlier this year, with plans to up the total to at least $500 billion, as they boost American innovation in AI. Both Oracle and OpenAI later revealed expanded plans to upgrade data center capabilities. Trump also targeted Walmart after the retailer warned its prices would increase to absorb the cost of his tariffs. Trump said the company should “EAT THE TARIFFS” and “not charge valued customers ANYTHING.”
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