Apple is planning to boost investments in its home country by another $100bn (£750m) as it comes under pressure from the Trump administration to do more manufacturing in the US.
The White House said the money would be used to try to expand Apple’s supply chain in the US and would add to the company’s previous pledge to spend $500bn in the US over four years.
Apple did not immediately comment.
On an investor call last week, chief executive Tim Cook referenced the company’s earlier commitment and said it was looking to “do more” in response to a new wave of tariffs poised to hit its products.
Earlier this spring President Donald Trump singled out Apple by name, threatening to raise tariffs on the company’s products if it did not move manufacturing of its iPhones to the US.
In a statement on Wednesday, the White House said the firm’s latest pledge was a sign that Trump’s policies were working to boost corporate investments in the US.
“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,” spokesperson Taylor Rogers said.
Apple has long made the bulk of its products in China.
It avoided duties during Trump’s first term, after working with the president to announce investments in the US.
Since Trump launched a new tariff war in January, announcing an additional 30% levy on Chinese-made goods, the company has responded to changes by reworking its supply chain, shipping goods to the US primarily from India and Vietnam.
But the company still paid out more than $800m in new border taxes on its products over the three months ended in June, reflecting Trump’s sweeping global so-called reciprocal tariffs, which have been in place since April.
It is expecting to pay another $1.1bn in coming months, despite exemptions from the measures that the White House granted to certain electronics in April.
With tariffs on Indian-made goods also set to ramp up to 50%, the company is now scrambling for new alternatives.
It is also bracing for a potential hit from White House plans for new tariffs specific to the semiconductor industry.
Despite those headwinds, Apple shares rose 4% in morning trade.
Mr Cook, who personally donated $1m to Trump’s inaugural committee, is expected to make the investment announcement at the White House on Wednesday.
On the call with investors, Mr Cook emphasised Apple’s involvement in the US, and its longstanding strategy of working with “third parties” to make investments.
He pointed to its previously announced plans to launch a “manufacturing academy” in Michigan.
Apple has also agreed to invest $500m in MP Materials, which is working to expand production of rare earths in the US. The US government has taken a stake in that company as well, while committing to a minimum price for its output.
Since his return to office, Trump has often promoted high-profile commitments of investments by firms like Apple. Analysts say the numbers he uses often appear exaggerated and there is no evidence yet of a wider trend.
By BBC News
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
