Apple plans to promote investment by another $ 100BN (£ 75bn) in the US as technical giant is under pressure from President Donald Trump.
The White House stated that funds would be used to encourage firms to create more apple parts in the US and would add the company’s previous vow to spend $ 500BN in the US over the years.
It comes after Trump takes Apple out of the name earlier this year, threatening to increase tariffs on its products if it does not transfer the iPhone manufacturing to the US.
Apple’s CEO Tim Cook refers to the company’s earlier commitment last week and said it was “doing more” as it tries to avoid a wave of tariffs ready 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 increase the spending “large -scale” on its domestic supply chain, creating new data centers across the country and building a smart glass production line in Harrisburg, Kentki, which will be used in iphones and smartwatches.
Trump appreciated the company for changes in production in the US and said he would avoid 100% tariffs he was planning on chips and semiconductors. He did not give much information about the new tariff scheme, but said that other companies can avoid taxes in the same way if they invest in America.
Standing with Trump, Mr. Cook, who personally donated $ 1M to Trump’s opening committee, stated that the company’s initial $ 500BN domestic investment was giving “already results” results.
The CEO stated that the new funding “will increase more production from here in the US, which is here in the US for important components used in Apple products worldwide.”
Mr. Cook also presented Trump with a glass statue, which he gathered at the resolute desk of the Oval Office.
Analysts stated that any significant change in Apple’s supply chain would take time, but the company’s promise could help win a mild treatment from the White House, Tram’s focus on increasing the business investment in the US.
After the news, the stocks increased by more than 5% on Wednesday.
In a statement on Wednesday, the White House said that the latest pledge of the firm was a sign that Trump’s policies were assuring companies to invest more money in the US.
A White House spokesman said, “Today’s announcement is another win for our manufacturing industry that will simultaneously help resume the production of important components to protect America’s economic and national security.”
Apple has long made a large part of its products in China.
It survived duties during Trump’s first term after Trump’s first term after agreeing to invest in the US, in declarations that it was coordinated with the White House.
But ever since Trump started a new tariff war in January, it has been scrambling, with an additional 30% levy on Chinese goods.
Apple has responded to changes ReciprocityMainly goods shipping to America From India and VietnamThose who face low tariffs on their exports.
But the company still paid more than $ 800m in the new border tax on its products in the three months ended June, showing Trump’s broad global so -called mutual tariffs, which have been in force since April.
It is expecting to pay another $ 1.1BN in the coming months, despite the exemption from measures that the White House gave to some electronics in April.
To ramps up to 50%with tariffs on Indian -made goods, it has increased tariff concerns.
On a call with investors, Mr. Cook insisted on Apple’s participation in the US, and its long strategy of working with “third parties” to invest.
He pointed to his first announced plans to launch “Manufacturing Academy” in Michigan, Also, its pledge to buy $ 500m in rare earth magnets from MP materials, which is working to expand the production of rare earth in the US. The US government has also taken a stake in that company for a minimum price for its output.
Since returning to office, Trump has often promoted high-profile commitments of investment by firms like Apple. Analysts say the numbers he uses often appear exaggerated and there is there. There is no evidence of comprehensive tendency yet,
PP Formite founder Paolo Pescatore praised Mr. Cook for Apple’s Defin Navigation through “disturbed time”, but said that it should be seen what would be the meaning of investment for many different pieces that go to apple devices and where they are produced.
“Surely if you look at the case today, it is impossible to think that everything can be done suddenly, can be produced and kept together in America overnight,” he said.
