Apple pledges $100 billion US investment to appease Trump

Apple has announced plans to invest an additional $100 billion in the United States, a move widely seen as a response to mounting pressure from President Donald Trump.

This new pledge adds to the company’s previous commitment to spend $500 billion domestically over four years and comes after Trump publicly threatened to impose tariffs on its products if iPhone manufacturing was not moved to the US.

During a White House announcement, Trump lauded the investment, claiming it would enable Apple to “massively” increase spending on its domestic supply chain. The new funding will be used to create data centres across the country and build a smart glass production line in Kentucky for use in iPhones and smartwatches.

Trump also used the occasion to announce that Apple would be avoiding a 100% tariff he was planning on chips and semiconductors, suggesting other companies could similarly bypass the taxes by investing in the US.

Apple CEO Tim Cook, who was present at the announcement, stated that the new funding “will spur even more production right here in America for critical components.”

Cook has been navigating a difficult tariff war launched by the Trump administration, which had already imposed a 30% levy on Chinese-made goods and a 50% tariff on Indian-made products. These actions have forced Apple to rework its supply chain, shifting production to countries with lower tariffs.

Analysts believe this latest pledge could help Apple secure more favorable treatment from the White House, given Trump’s focus on increasing domestic business investments.

The announcement was met with a positive market reaction, with Apple’s shares surging more than 5%. Despite the announcement, experts caution that any significant changes to Apple’s global supply chain will take time.