Apple to Invest $1 Trillion in US Manufacturing Amid Trade Tensions

Apple Inc. is set to announce a significant investment of 1000 billion dollars in domestic manufacturing, as part of a broader strategy to increase its product production within the United States. This move comes amidst ongoing trade tensions and aims to avoid potential punitive tariffs on its flagship product, the iPhone. The investment is part of a new manufacturing plan that seeks to bring more of Apple's supply chain to the United States and produce more critical components domestically.

The announcement, to be made at the White House, includes a new manufacturing plan aimed at bringing more of Apple's supply chain to the United States. This plan focuses on producing more critical components domestically, which is seen as a strategic move to bolster the country's economic and national security. The White House has emphasized that this investment is a victory for American manufacturing and will support jobs and businesses in the United States.

This latest commitment brings Apple's total investment in the United States to 600 billion dollars, following a previous announcement of a 500 billion dollar investment over the next four years. The President had previously warned that if Apple did not move its iPhone manufacturing to the United States, it would face at least a 25% tariff. Currently, Apple primarily manufactures its phones in China and India and has been seeking tariff exemptions for its iPhone product line.

This announcement is part of a series of efforts by the administration to encourage businesses to expand their operations within the United States. Earlier this year, Oracle, SoftBank, and OpenAI announced a 1000 billion dollar investment in artificial intelligence data centers, aiming to boost innovation in technology and artificial intelligence. Additionally, the President has been working with major chip companies to increase domestic production of AI model chips, with plans to invest 500 billion dollars over the next four years.

The administration has also been using investment commitments as a key part of its negotiations with other countries on trade and geopolitical issues. For instance, agreements with the European Union include a commitment to purchase 750 billion dollars of American energy products and invest 600 billion dollars in the United States. Similarly, an agreement with Japan includes a 550 billion dollar fund for investments in the United States.