Apple Commits Another $100 Billion to US Manufacturing
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In February, Apple’s CEO Tim Cook met with President Trump at the White House to discuss US manufacturing and tariffs. A few short days later, Apple pledged to spend $500 billion over 4 years across all 50 states. Some of the plan’s initiatives included investments in AI, engineering, doubling its US Advanced Manufacturing Fund to produce chips in TSMC’s Arizona factory, opening the Apple Manufacturing Academy in Detroit, Michigan, and adding 20,000 new Apple employees.
Today, Apple has announced an additional $100 billion investment towards bringing more of its supply chain and manufacturing stateside.
Earlier this week, Trump expressed his frustration over India continuing to purchase oil from Russia and reselling it. As a response, Trump said he plans to raise the tariff on goods imported to the US from India. This tariff has already jumped from 10% to 25%. While the iPhone hasn’t yet become caught up in these new tariffs, it’s only a matter of time.
Is today’s announcement a direct response to these recent threats to India? Perhaps. In a visit to the White House today, Cook announced a new $2.5 billion commitment to have Corning manufacture 100 percent of iPhone and Apple Watch cover glass in Kentucky, presenting President Trump a “unique” piece of Corning glass with a 24-karat gold base to commemorate the deal.
This $2.5 billion was only a small part of the additional $100 billion commitment that will bring Apple’s overall US spending to $600 billion over the next four years.
Today, we’re proud to increase our investments across the United States to $600 billion over four years and launch our new American Manufacturing Program. This includes new and expanded work with 10 companies across America. They produce components that are used in Apple products sold all over the world, and we’re grateful to the President for his support.
Tim Cook, Apple’s CEO
Cook recently said during last quarter’s earnings call that tariffs cost Apple $800 million over the course of those 3 months, and expects this number to reach as much as $1.1 billion in the year’s final quarter.
This morning, on Fox Business Network, the National Economic Council director, Keven Hasset, said companies are “moving here in droves, which is why we’ve got trillions and trillions of dollars of commitments for people to build new factories here. In fact, you’re likely to see one today from Apple.”
Despite the seemingly frantic pace of tariff news and pivoting by Apple, realizing results from these investments will likely take years. Apple is essentially revamping its supply chain process and manufacturing strategy. Until then, Apple will be forced to rely on tariff exemptions to maintain its current supply level and hopefully keep prices relatively stable for consumers.
