Apple plans to take pressure from the Trump administration to do more manufacturing in the United States, increasing its investment in its home country by $100 million (£750 million).
The White House said the money will be used to encourage companies to make more Apple parts in the United States and will increase the company’s Previous Commitment Spend $50 billion in the United States over four years.
Apple did not comment immediately.
During an investor call last week, CEO Tim Cook mentioned the company’s earlier commitment and said he wanted to “do more” as it tries to avoid a series of waste of tariffs with funds.
Earlier this spring, President Donald Trump picked up Apple by his name, threatening to raise tariffs on the company’s products if its iPhone manufacturing industry was not transferred to the U.S..
Any major changes in Apple’s supply chain will take time, but as Trump focuses on increasing business investment in the United States, the company’s commitment could help it win lighter treatment from the White House, analysts said.
Stocks rose more than 4% in morning trading.
The White House said in a statement Wednesday that the company’s latest commitments suggest that Trump’s policy has convinced companies to put more money into the United States.
“The announcement announced at Apple today is another victory for our manufacturing industry, which will simultaneously help re-production key components to protect the U.S. economy and national security,” spokesman Taylor Rogers said.
Apple has long been making most of its products in China.
It avoided responsibility in Trump’s first semester after agreeing to make more investments in the United States in a notice coordinated with the White House.
But it has been scrambling to announce a 30% tax on Chinese-made goods since Trump launched a new tariff war in January.
Apple has responded to changes Redesign its supply chainmainly shipped to the United States From India and Vietnamthe tariffs faced by its exports are relatively low.
However, the company still paid more than $800 million in new border taxes in the three months to June, reflecting the global so-called reciprocity tariffs Trump has been implementing since April.
Despite exempting the White House from giving certain electronics in April, it expects to pay another $1.1 billion in the coming months.
With tariffs on Indian-made goods also going up to 50% tax rates, the company is now scrambling to avoid taxes.
This is also a potential blow to the White House’s new tariff plan unique to the semiconductor industry.
Mr. Cook personally donated $1 million to Trump’s inauguration committee and is expected to issue an investment announcement at the White House on Wednesday.
In a call with investors, Mr. Cook highlighted Apple’s participation in the United States and its long-term strategy of investing with “third parties”.
He pointed to previously announced plans to open a “manufacturing college” in Michigan It also pledged to invest $500 million in MP materials, which is working to expand production of rare earths in the United States. The U.S. government also assumed stake in the company while promising its lowest output price.
Since his return to office, Trump has often promoted high-profile commitments to investment by companies like Apple. The analyst says the numbers he uses are often exaggerated and there are There is no evidence of a broader trend.
Paolo Pescatore, founder of PP Foresight, praised Mr. Jack, who sailed to Apple during the “turbulent times”, but said that investment can still be seen what investment means for many different items entering Apple devices and where they are produced.
“Of course, if you look at the case today, it’s impossible to think that everything can be suddenly produced, manufactured and placed in the United States now,” he said.
