US smartphone and technology behemoth Apple have announced a $100bn investment in US manufacturing, seen by many as a move designed to fend off potential tariffs from US President Donald Trump.
The announcement was made during a press conference hosted by US President Donald Trump that was held yesterday at The White House.
The investment increases Apple’s initial commitment of $500bn in US manufacturing to $600bn over the next four years.
Many analysts believe the fresh investment from Apple has been done to ring-fence any potential tariffs being imposed on the company by the Trump administration.
Trump hailed the investment by Apple, which he sees as a big political win for him amongst his base of MAGA supporters.
Trump said, “This is the largest investment Apple has ever made in America and anywhere else.”
The announcement also coincided with the launch of the American Manufacturing Program, which is dedicated to bringing a greater amount of Apple’s supply chain to the US.
The tech giant will also provide incentives for other companies to manufacture critical components domestically.
Trump stated that it was his desire to see iPhones that are sold in America being made in America.
“Apple will massively increase spending on its domestic supply chain for the iPhone and will build the largest and most sophisticated smart glass production line in the world. This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America with the mass infusion of capital it’s announcing today.”
During an earnings call last week, Apple CEO Tim Cook revealed that the company took a whopping $800m hit from tariffs in Q3, with that tally expected to rise to $1.1bn by the end of Q4.
He admitted that the company will try to do more when it comes to the development of its supply chain domestically.
Apple plans to build semiconductors across 12 US states in 24 factories.
The meeting between Trump and Cook was very cordial, with the US President describing Apple’s CEO as a genius and one of the most esteemed innovators in the world, but their relationship has been fractious at times.
In May, Trump took to his Truth Social media platform to declare that he expects iPhones sold in the US to be manufactured domestically, warning that if Apple fails to do that then it will be hit with a 25% tariff.
In addition to its investment plans for US manufacturing, Apple has also been proactive about moving more of its production out of China and into countries such as India.
However, India is now in the crosshairs of Trump after its decision to purchase oil from Russia, with Trump slapping a 50% US tariff rate on goods coming from the country.
