Donald Trump’s pressure to pull out $100 billion in Apple investment commitment

Apple plans to put the technology giant under pressure from President Donald Trump to increase its investment in the United States by $10 billion (£7.5 billion).

The White House said the money will be used to encourage companies to make more Apple parts in the United States and will increase the company’s Previous Commitment Spend $50 billion in the United States over four years.

This comes after Trump picked out Apple by name earlier this year, threatening to raise tariffs on its products if iPhone manufacturing is not transferred to the U.S.

Apple CEO Tim Cook mentioned the company’s earlier commitment last week and said he hopes to “do more” as it tries to avoid wasting tariffs.

Apple has been contacted for comment in a Wednesday investment announcement.

Any major changes in Apple’s supply chain will take time, but as Trump focuses on increasing business investment in the United States, the company’s commitment could help it win lighter treatment from the White House, analysts said.

Stocks rose more than 4% in morning trading.

The White House said in a statement Wednesday that the company’s latest commitments show that Trump’s policy has convinced companies to invest more money into the United States.

“Today’s announcement at Apple is another victory for our manufacturing industry, which will help re-production key components to protect the U.S. economy and national security,” a White House spokesman said.

Apple has long been making most of its products in China.

It avoided responsibility in Trump’s first semester after agreeing to make more investments in the United States in a notice coordinated with the White House.

But it has been scrambling to announce a 30% tax on Chinese-made goods since Trump launched a new tariff war in January.

Apple has responded to changes Redesign its supply chainmainly shipped to the United States From India and Vietnamthe tariffs faced by its exports are relatively low.

However, the company still paid more than $800 million in new border taxes in the three months to June, reflecting the global so-called reciprocity tariffs Trump has been implementing since April.

Despite exempting the White House from giving certain electronics in April, it expects to pay another $1.1 billion in the coming months.

As tariffs on Indian goods will now be raised to 50%, the tariff concerns are increased.

Apple has also been hit by the White House plan being hit by new tariff plans specific to the semiconductor industry.

Mr. Cook personally donated $1 million to Trump’s inauguration committee and is expected to issue an investment announcement at the White House on Wednesday.

In a call with investors, Mr. Cook highlighted Apple’s participation in the United States and its long-term strategy of investing with “third parties”.

He pointed to previously announced plans to open a “manufacturing college” in Michigan It also pledged to invest $500 million in MP materials, which is working to expand production of rare earths in the United States. The U.S. government also assumed stake in the company while promising its lowest output price.

Since his return to office, Trump has often promoted high-profile commitments to investment by companies like Apple. The analyst says the numbers he uses are often exaggerated and there are There is no evidence of a broader trend.

Paolo Pescatore, founder of PP Foresight, praised Mr. Jack, who sailed to Apple during the “turbulent times”, but said that investment can still be seen what investment means for many different items entering Apple devices and where they are produced.

“Of course, if you look at the case today, it’s impossible to think that everything can be suddenly produced, manufactured and placed in the United States now,” he said.