Apple to invest additional $100bn in domestic manufacturing

Apple will invest an additional $100 billion in the United States over the next four years, bringing its total investment to $600 billion, US President Donald Trump announced Wednesday.

Trump announced the expanded commitment at the White House with Apple CEO Tim Cook, calling it “the largest investment Apple has made in America.”

Trump said Apple will massively increase spending on its domestic supply chain pointing to a new glass production facility in Kentucky for iPhone screens.

Trump, who has pushed US companies to shift manufacturing home by slapping tariffs on trading partners, claimed that his administration was to thank for the investment.

“This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America,” Trump said.

Cook later clarified that, while many iPhone components will be manufactured in the United States, the complete assembly of iPhones will still be conducted overseas.

Trump has repeatedly said he plans to impose a “100 percent” tariff on imported semiconductors, a major export of Taiwan, South Korea, China and Japan.

While he did not offer a timetable for enactment of the new tech levies, on Tuesday he said fresh tariffs on imported pharmaceuticals and semiconductors and chips could be unveiled within the coming week.

The US is “going to be very rich and it’s companies like Apple, they’re coming home,” Trump said.

Trump specified further that “Apple will help develop and manufacture semiconductors and semiconductor equipment in Texas, Utah, Arizona and New York.”

He noted that if tech companies commit to manufacturing their wares in the US, “there will be no charge.”

Apple reported a quarterly profit of $23.4 billion in late July, topping forecasts despite facing higher costs due to Trump’s sweeping levies.

The tariffs are essentially a tax paid by companies importing goods to the United States. This means Apple is on the hook for tariffs on iPhones and other products or components it brings into the country from abroad.