Apple has pledged to invest an additional €92 billion in the United States, bringing its total domestic investment commitment to €554 billion over the next four years. The move was announced by former President Donald Trump during an Oval Office event where Apple CEO Tim Cook presented him with a US-made gift bearing a 24-karat gold base.
A strategy to avoid Apple iPhone tariffs
This significant announcement comes amid growing concerns over tariffs. Apple’s increased investment is seen as a strategic move to potentially sidestep future levies on Apple iPhones. In May, Trump had threatened a 25% tariff on products manufactured overseas, a sharp policy reversal that would have cost Apple dearly. Analysts estimate Apple lost € 738 million due to tariffs in the June quarter alone.
Focus remains on advanced manufacturing
While the company’s investment will help expand its US-based supply chain and advanced manufacturing presence, Apple stopped short of promising full domestic production of the Apple iPhone. CEO Tim Cook acknowledged that many key components like semiconductors, Face ID modules and glass are already produced in the US, but final assembly will still take place abroad for the foreseeable future.
Trump signals tariff exemptions for Apple
As part of his push to boost US manufacturing, Trump also announced a 100% tariff on semiconductor imports, exempting firms manufacturing domestically or those committing to do so. This move is seen as directly benefitting Apple’s investment strategy, which now puts it in favorable standing with the Trump camp, after recent tensions.
Analysts say investment fits Apple’s trend
Despite the political noise, market analysts suggest that the €554 billion pledge aligns with Apple’s long-term capital investment trends. In January, the company had already committed €462 billion and 20,000 new jobs across the US, suggesting the additional sum is part of a broader strategy rather than a sudden policy shift.
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