(qlmbusinessnews.com . Thu 7th Aug, 2025) London, UK —
Tech Giant Apple Boosts US Investments to $600 Billion Amid Trump Tariff Warnings
Apple has announced plans to inject an additional $100bn (£75bn) into the US economy, stepping up its investments amid intensifying urges from President Donald Trump. The announcement comes on the heels of increasing demands from the Trump administration for firms to ramp up their domestic production, particularly of Apple components, adding further momentum to the tech giant's existing commitment to invest $500bn in the United States over a span of four years.
This strategic move was unveiled following direct criticisms from President Trump earlier in the year, where he specifically targeted Apple, threatening heightened tariffs on its products unless the company relocated its iPhone manufacturing bases to the US.
In a statement highlighting its renewed commitment, Apple’s CEO Tim Cook underscored the firm's intentions to “do more” in bolstering its US investments, amidst looming threats of tariffs which could potentially affect its products. Speaking at a formal declaration at the White House, President Trump applauded Apple's decision, emphasizing that the investment would significantly augment Apple's spending on its domestic supply chain. The plans include the inauguration of new data centres across the nation and the establishment of a smart glass production facility in Harrisburg, Kentucky, aimed at serving the manufacturing needs for iPhones and smartwatches.
President Trump also highlighted that by shifting production to the US, Apple would circumvent a looming 100% tariff on chips and semiconductors, a gesture extending to other companies willing to amplify their US investments.
Amidst this announcement, Mr Cook, who had earlier contributed $1m to Trump's inaugural committee, articulated that the initial investment of $500bn is already bearing fruit. He projected that the additional funding would further stimulate the production of critical components within America for global use in Apple products. During the event, Mr Cook also presented Trump with a glass statue, crafted at the Resolute Desk in the Oval Office.
Analysts caution that while Apple's commitment is a significant development, any substantial changes to its supply chain will necessitate time. However, the promise may secure a more favorable stance from the White House, especially considering President Trump’s focus on escalating US business investments.
Following the news, Apple's shares witnessed a surge of over 5%. The White House, in a statement, portrayed Apple’s latest pledge as evidence of Trump's policies successfully enticing companies to enhance their investments in the US, citing it as a victory for the manufacturing industry that would help in reshoring production of critical components, thus safeguarding America’s economic and national security.
Despite Apple’s historical reliance on China for the majority of its production, the tech giant has been reorienting its supply chain, particularly in response to Trump’s new tariff impositions, by increasingly sourcing from countries like India and Vietnam which are subjected to lower tariffs. However, Apple still faced over $800m in new border taxes in the quarter ended June, due to the so-called reciprocal tariffs initiated by Trump since April, with anticipations of a further $1.1bn in tariff payments, despite some exemptions.
On an investor call, Mr Cook affirmed Apple’s commitment to the US, highlighting its strategy to facilitate investments through partnerships, such as the launch of a “manufacturing academy” in Michigan and a $500m investment in rare earth magnets from MP Materials.
While Trump frequently promotes significant investment commitments from companies like Apple, analysts, including Paolo Pescatore of PP Foresight, remain skeptical about the immediate impact of such investments on the overall manufacturing and assemblage processes of Apple products within the US, given the complex global supply chains. Despite these challenges, Pescatore commends Cook’s adept navigation through turbulent times but stresses that the long-term implications of such substantial investments remain to be fully realized.
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