Trump and Apple Unveil $100B US Investment. What You Need To Know

Apple (AAPL) CEO Tim Cook joined President Donald Trump at the White House Wednesday to announce another $100 billion investment in the U.S.

The pledge will include a new manufacturing program that expands the number of Apple components made domestically, and could help the company avoid more punishing tariffs on its products. 

“This includes new and expanded work with 10 companies across America. They produce components that are used in Apple products sold all over the world, and we’re grateful to the President for his support,” Cook said.

Those partner companies include chipmaker Broadcom (AVGO), chip equipment maker Applied Materials (AMAT), Texas Instruments (TXN), rare earth magnets producer MP Materials (MP), and Corning (GLW). Cook said that as part of its expanded partnership with Corning, soon all the cover glass for Apple’s iPhones and Apple Watches worldwide would be made in the U.S. for the first time, at a Corning facility in Kentucky.

“This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America,” Trump said at the event.

“President Trump’s America First economic agenda has secured trillions of dollars in investments that support American jobs and bolster American businesses. Today’s announcement with Apple is another win for our manufacturing industry that will simultaneously help reshore the production of critical components to protect America’s economic and national security,” White House spokesperson Taylor Rogers told Investopedia in a statement.

Shares of Apple jumped over 5% Wednesday ahead of the announcement. However, they’ve still lost almost 15% of their value since the start of the year amid worries about its progress in AI and a growing hit from tariffs.

Apple Has Faced Months of Trump Tariff Pressure

Apple has faced intense pressure from Trump in recent months to make more of its flagship products like the iPhone in the U.S. In May, the president threatened that his administration would impose a 25% tariff on phones sold in the U.S. made outside the country if Apple doesn’t act to shift more of its operations stateside. 

While the latest move from Apple raises its U.S. commitments, it also doesn’t promise a full-fledged shift to making iPhones in the U.S., which Wall Street analysts have called a “non-starter” that would prohibitively raise costs. Still, the expansion of Apple’s U.S. commitments, after a $500 billion pledge earlier this year, could help soothe some of Trump’s ire, as the iPhone maker faces a growing hit from tariffs.

Apple, which said last week that it absorbed $800 million in tariff costs in the fiscal third quarter, projected an even bigger $1.1 billion hit from tariffs this quarter—assuming no changes in tariff levels. 

After shifting some of its production from China, Cook said that a majority of iPhones sold in the U.S. now come from India, with the majority of Macs and other Apple products sold domestically being shipped from Vietnam.

Wednesday morning, the White House said the U.S. will impose an additional 25% tax on imports from India, raising the overall rate on goods from the country to 50%.

This article has been updated since it was first published to include additional information and reflect more recent share price values.