Apple to invest $100bn after pressure from Trump
10 hours ago Share Save Natalie Sherman BBC News Share Save
Watch: Tim Cook presents Trump with glass statue after $100bn investment announcement
Apple plans to boost investment in the US by another $100bn (£75bn) as the tech giant comes under pressure from President Donald Trump. The White House said the money would be used to encourage firms to make more Apple parts in the US and would add to the company's previous pledge to spend $500bn in the US over four years. It comes after Trump singled out Apple by name earlier this year, threatening to raise tariffs on its products if it did not move iPhone manufacturing to the US. Apple chief executive Tim Cook last week referenced the company's earlier commitment and said it was looking to "do more" as it tries to avoid a wave of tariffs poised to hit its products.
During a formal announcement at the White House on Wednesday, the president said that as part of the investment, Apple would "massively" increase spending on its domestic supply chain, including by creating new data centres across the country and building a smart glass production line in Harrisburg, Kentucky that will be used in iPhones and smartwatches. Trump lauded the company for shifting production to the US and said they would be avoiding a 100% tariff that he was planning on chips and semiconductors. He did not offer more details on the new tariff plan, but said other companies could similarly avoid the taxes if they invest in the US. Standing alongside Trump, Mr Cook, who personally donated $1m to Trump's inaugural committee, said the company's initial $500bn domestic investment was "already yielding results". The new funding "will spur even more production right here in America for critical components used in Apple products all around the world", the CEO said.
AFP/Getty Trump and Apple boss Tim Cook tour a manufacturing facility in 2019, when Apple avoided tariffs on its products after announcing investments in the US
Mr Cook also presented Trump with a glass statue, which he assembled in the Oval Office's Resolute Desk. Analysts said any significant change to Apple's supply chain would take time, but the company's promise might help it win lighter treatment from the White House, given Trump's focus on increasing business investments in the US. Shares surged more than 5% on Wednesday after the news. In a statement on Wednesday, the White House said the firm's latest pledge was a sign that Trump's policies were convincing companies to put more money into 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," a White House spokesperson said.