Apple confirmed a $100bn (R1.85 trillion) investment in US manufacturing on 7 August 2025, following direct pressure from President Donald Trump. CEO Tim Cook stood beside Trump to unveil the plan at the White House.
The investment adds to Apple’s previous $500bn (R9.25 trillion) pledge, bringing its total US commitment to $600bn (R11.1 trillion). Trump had threatened 100% tariffs on chips and semiconductors imported into the US.
Although Apple continues production in India, Trump’s recent demand pushed the company to expand key manufacturing operations back to the United States.
TRUMP’S TARIFF FORCES APPLE TO RESTRUCTURE SUPPLY CHAIN
In April 2025, Trump enacted a 10% tariff on Chinese goods, later adjusting rates amid a temporary truce in May. Apple’s ongoing production shifts to India and Vietnam accelerated as a result.
On 6 August 2025, Trump added a 25% tariff, raising the total tariffs on Indian goods to 50%, in response to India’s continued purchase of Russian oil. The White House has specifically exempted consumer electronics, including smartphones and computers, from these duties.
Therefore, the tariffs do not directly challenge Apple’s sourcing strategy in India. Apple paid $800 million (R14.8 billion) in border taxes in Q3 and expects to pay an additional $1.1 billion (R20.35 billion) by September 2025.
COOK HIGHLIGHTS DOMESTIC JOBS AND PARTNERSHIPS
Tim Cook stated that Apple will hire 20 000 US workers to support its expanded domestic supply chain. The company will build a smartglass production line in Kentucky and launch a manufacturing academy in Michigan.
Apple has also committed $500m (R9.25 billion) to MP Materials for rare earth magnet production, backed by a US government price guarantee. Cook highlighted Apple’s long-term strategy of partnering with third parties for US-based production.
INVESTORS RESPOND AS TRUMP CLAIMS VICTORY
Apple shares rose between 4% and 6% following the announcement, reflecting investor relief over tariff avoidance. At the same event, Tim Cook presented Trump with a symbolic silicon‑wafer sculpture set on a 24‑karat gold base, commemorating the new US manufacturing pledge.
Trump praised the announcement as a “significant step” and described it as part of the “greatest investment boom” in US history. Analysts caution, however, that although the figures are substantial, they might not reflect a broader trend of reshoring.
Trump’s tariff threats continue to reshape global technology supply chains.
APPLE’S $100BN PLEDGE: REAL CHANGE OR POLITICAL GESTURE?
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