US Futures Climb Amid Trump's Chip Tariff Threats and Earnings Catalysts.

US futures rose after President Trump hinted at a 100% tariff on chip imports, while Asian equity futures were mixed. The move comes as Apple CEO Tim Cook unveiled a $100 bln investment plan alongside Trump. The latest tariff salvo added volatility to an otherwise bullish day on Wall Street, lifting US stocks and short-dated Treasuries. The dollar weakened as investors await Fed rate cut expectations.

US futures rose after President Trump hinted at a 100% tariff on chip imports, while Asian equity futures were mixed. The move comes as Apple CEO Tim Cook unveiled a $100 billion investment plan alongside Trump. The latest tariff salvo added volatility to an otherwise bullish day on Wall Street, lifting US stocks and short-dated Treasuries. The dollar weakened as investors await Fed rate cut expectations.

Apple (AAPL) announced plans to invest an additional $100 billion in US manufacturing commitments during a press event at the White House with President Trump on Wednesday [1]. This move follows Apple's prior $500 billion investment in US spending, which includes working with partners to build an AI server plant in Texas. Shares of Apple climbed more than 2% following the news.

The $100 billion announcement includes Apple's new American Manufacturing Program (AMP), which aims to incentivize global companies to build critical components in the US. The tech giant's first AMP partners will include Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, and Broadcom [1]. Apple is making a $2.5 billion commitment to produce all of the cover glass for its iPhones and Apple Watches at Corning's Harrodsburg, Kentucky, manufacturing facility [1].

Additionally, Apple has entered a multiyear agreement with Coherent to produce lasers for its Face ID feature for the iPhone and iPad [1]. The company is also touting an end-to-end American silicon supply chain, which includes sourcing silicon wafers from GlobalWafers in Sherman, Texas, for use in American chip factories; working with Applied Materials to increase production of semiconductor manufacturing technologies; and getting semiconductors from Texas Instruments [1].

Apple's news comes as the company prepares for a new 25% tariff on goods destined for the US from India. That's in addition to an existing 25% levy Trump previously said he would apply to the country's products [1]. Apple builds the majority of the iPhones headed to the US in India, having diversified its supply chain beyond China following the COVID-19 pandemic [1].

The announcement also comes as the company prepares for a new 25% tariff on goods destined for the US from India. That's in addition to an existing 25% levy Trump previously said he would apply to the country's products [1]. Apple builds the majority of the iPhones headed to the US in India, having diversified its supply chain beyond China following the COVID-19 pandemic [1].

During its most recent quarterly earnings report, Apple said it took an $800 million hit due to existing tariffs and anticipated an additional $1.1 billion in related costs in its current quarter [1]. The company's stock rose 2.8% premarket, reflecting investor confidence in navigating tariffs and maintaining competitive pricing against rivals like Samsung [2].

The White House event is expected to formalize the announcement, with all eyes on Apple to deliver on its ambitious pledge. The company’s ability to balance its global operations with domestic expansion will play a key role in shaping its contribution to Trump’s vision of a revitalized U.S. manufacturing sector [2].

References:
[1] https://finance.yahoo.com/news/apple-announces-additional-100-billion-in-us-investment-following-trump-iphone-tariff-threat-210803143.html
[2] https://www.ainvest.com/news/apple-boosts-manufacturing-pledge-600-billion-trump-tariffs-2508/