Under Trump's pressure: Apple to increase US investments by $100 billion
Photo: Apple to allocate another $100 billion for investments in the US (Getty Images)
Apple has announced that it will expand its planned investments in the United States amid pressure from Trump to relocate its supply chain to America, according to NBC News.
On Wednesday, US President Donald Trump appeared at the White House alongside Apple CEO Tim Cook.
Speaking to the press, Trump said that his administration is "going to be putting a very large tariff on chips and semiconductors," but clarified that any company building in the US would be exempt from those fees.
He noted that the tariff would be about 100% and would apply to all chips imported into the country.
"Trump has warned he will be announcing tariffs on semiconductors, which could affect iPhones, iPads, MacBooks, and other popular Apple products," NBC News reported.
Cook on US investments and domestic production
"I'm glad to be here with you today, and I'm very proud to say that today, we're committing an additional $100 billion to the United States," Cook told Trump during their White House event.
He added that Apple had already signed new agreements with 10 companies across the US to expand production.
"Second, we're committed to buying American-made, advanced rare earth magnets," he added, noting an agreement announced in July.
Apple also announced it would manufacture all glass covers for iPhones and Apple Watches sold worldwide in the US. Specifically, glassmaker Corning will produce the components at its plant in Harrodsburg, Kentucky, as part of a $2.5 billion agreement.
"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," Trump said.
NBC reported that Corning will retool all of its facilities to manufacture Apple products, which will increase the company’s manufacturing and engineering workforce in Kentucky by 50%.
Meanwhile, Apple stated that the glass production announcement is part of its $600 billion commitment to relocate parts of its supply chain to the US. Previously, the company pledged to invest $500 billion over the next four years.
Apple supplier Applied Materials also announced a $200 million investment in a plant in Arizona to produce equipment for chip manufacturing.
This equipment will be used by Texas Instruments, another Apple supplier, to produce certain semiconductors used in Apple devices.
"Apple will also build a 250,000-square-foot server manufacturing facility in Houston, and invest billions of dollars to construct data centers across the country from North Carolina to Iowa to Oregon," Trump also said.
The company had already announced the Houston server plant, which is expected to open in 2026.
Chances production shifts to US
NBC noted that Apple’s announcement does not mean that final assembly of major products such as the iPhone, iPad, or MacBook will take place in the US.
Cook told reporters that final iPhone assembly "for now" would not happen in the US, although "many" components are made in America. The outlet pointed out that most iPhones are manufactured in India and China.
NBC also reminded that most of Apple’s best-selling products are currently exempt from tariffs.
That exemption remains while the US Department of Commerce conducts a Section 232 investigation to determine the national security impact of importing these products and components.
Nonetheless, despite the exemptions, Apple lost $800 million last quarter and expects to lose another $1.5 billion over the next three months.
In April, US Commerce Secretary Howard Lutnick said that the Trump administration’s decision to exempt smartphones, computers, and chips from the new import tariffs was only a temporary relief.
