Apple shares rise 4%; co to announce domestic manufacturing pledge of $100 billion

Apple shares rise 4%; co to announce domestic manufacturing pledge of $100 billion

Apple Inc. shares rose by 4% on Tuesday, following reports that the company is set to announce a new domestic manufacturing pledge of $100 billion. This announcement comes as part of Apple's ongoing efforts to increase its presence in the United States and avoid potential tariffs on its flagship iPhones.

The new pledge, scheduled to be announced at the White House on Wednesday, will focus on bringing more of Apple's supply chain to the U.S. [1] The announcement includes a new manufacturing program designed to produce more critical components domestically. This move aligns with President Donald Trump's "America First" economic agenda, which aims to support American jobs and bolster American businesses.

Apple's Chief Executive Officer Tim Cook is expected to attend the event. The company has previously announced plans to spend $500 billion in the U.S. over the next four years, which includes the construction of a new server manufacturing facility in Houston and a supplier academy in Michigan. The new $100 billion pledge will bring Apple's cumulative commitment to $600 billion [2].

While the promised investment is substantial, it falls short of a full shift to U.S.-based production. Earlier this year, Trump threatened to impose a tariff of at least 25% on Apple if it didn't move manufacturing of the iPhone to the U.S. Apple has been working to win a tariff carve-out for its most important products, which could help the company avoid costs that could erode profit margins and increase consumer prices.

Apple's initial $500 billion pledge, announced in February, represented a slight acceleration over its prior investments. The new $100 billion commitment will add to this existing plan, further demonstrating Apple's commitment to investing in the U.S. economy.

The Apple event is the latest in a series of announcements made by Trump alongside corporate leaders who have said they plan to increase their U.S. presence. Earlier this year, Trump announced a $100 billion investment in artificial intelligence data centers from Oracle Corp., SoftBank Group Corp., and OpenAI Inc. [3]

References:
[1] https://finance.yahoo.com/news/trump-apple-announce-fresh-100-130329501.html
[2] https://finance.yahoo.com/news/white-house-adviser-apple-likely-123003756.html
[3] https://www.cnbctv18.com/market/apple-q3-results-iphone-china-subsidy-growth-q4-guidance-share-price-returns-19646976.htm