Trump, Apple to Announce Fresh $100 Billion US Investment

President Donald Trump plans to announce that Apple Inc. will commit to spending another $100 billion on domestic manufacturing, the latest pledge by the tech giant to increase US production of its products as it seeks to avoid punishing tariffs on its flagship iPhones.

The announcement at the White House on Wednesday includes a new manufacturing program designed to bring more of Apple’s supply chain to the US, with an eye toward assembling additional critical components domestically, according to a White House official who detailed the announcement on the condition of anonymity. Apple Chief Executive Officer Tim Cook is expected to attend the event.

“President Trump’s America First economic agenda has secured trillions of dollars in investments that support American jobs and bolster American businesses,” White House spokesperson Taylor Rogers said in a statement. “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.”

Apple did not immediately respond to a request for comment.

The company has previously announced it plans to spend $500 billion in the US over the next four years, which will include work on a new server manufacturing facility in Houston, a supplier academy in Michigan and additional spending with its existing suppliers in the country. Wednesday’s announcement will bring Apple’s cumulative commitment to $600 billion, the White House said.

Bloomberg's Managing Editor for Global Consumer Tech Mark Gurman reports.

Apple shares were up as much as 3.6% on Wednesday, the most in almost three months.

The latest pledge may “soften the White House’s ire” over Apple’s heavy reliance on India for iPhone assembly, Bloomberg Intelligence analysts Anurag Rana and Andrew Girard said. “We anticipate Apple will focus on higher-end products, artificial intelligence labs and semiconductor engineering in the US, rather than mass-produced lower-end phones and accessories.”

Trump signed an order Wednesday hiking tariffs on goods from India by an additional 25% over its purchases of Russian oil, on top of a 25% country-specific duty set to take effect Thursday.

While Apple’s promised investment is substantial, it stops short of the full shift to US-based production that Trump and top White House officials have envisioned.

Earlier this year, the president threatened to hit Apple with a tariff of at least 25% if it didn’t move manufacturing of the iPhone to the US, a day after meeting with Cook at the White House. Trump administration officials have suggested that Apple could assemble its phones and other electronics domestically using robotics.

Apple said last week that it took an $800 million hit from tariffs in the June quarter — slightly less than previously projected — and expected them to add $1.1 billion its costs in the September quarter, assuming no policy changes or new duties.

During a call last week with analysts, Cook said “the vast majority” of iPhones sold in the US come from India, while the bulk of other products, such as MacBooks, iPads and Apple Watches, sold in the US are manufactured in Vietnam.

“We obviously try to optimize our supply chain,” Cook said at the time. “And ultimately, we will do more in the United States.”

But onshoring manufacturing, particularly for the iPhone product line, would amount to a massive undertaking for Apple, whose facilities in China and India employ several hundred thousand people and involve heavily customized processes.

Instead, Cook has led a push to win a tariff carve-out for the company’s most important products. Trump is readying plans to unveil levies on all products containing semiconductor chips as soon as next week. Separately, the president’s country-specific tariffs on dozens of trading partners are set to take effect on Thursday.

During Trump’s first term, Apple was able to convince Trump to exempt its products from import taxes. I

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