Apple pledging further $100bn in US investment

Company shifting some investment to US in bid to avert further tariffs

Apple CEO Tim Cook and US president Donald Trump. Apple is pledging a domestic manufacturing pledge of $100bn (€86bn) on Wednesday that will focus on bringing more manufacturing to the United States, a White House official said. Picture: AP Photo/ Evan Vucci

Apple is pledging a domestic manufacturing pledge of $100bn (€86bn) on Wednesday that will focus on bringing more manufacturing to the United States, a White House official said.

The pledge would be a new financial commitment, the official said on the customary condition of anonymity. It comes as US president Donald Trump pursues an aggressive tariff and trade agenda aimed at moving some manufacturing back into the United States.

Apple said in February it would spend $500bn (€431bn) in US investments in the next four years that will include a giant factory in Texas for artificial intelligence servers while adding about 20,000 research and development jobs across the country.

Mr Trump's tariffs cost Apple $800m (€689m) in the June quarter and spurred some customers to buy iPhones in late spring this year. Apple has been shifting production of products bound for the US, sourcing iPhones from India and other products such as Macs and Apple Watches from Vietnam.

The ultimate tariff rates many Apple products could face remain in flux, and many of its products are currently exempt.

"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 spokeswoman Taylor Rogers said in a statement.

Meanwhile Mr Trump on Wednesday issued an executive order imposing an additional 25% tariff on Indian goods citing New Delhi's continued imports of Russian oil, sharply escalating tensions between the two countries after trade talks collapsed.

The new measure raises tariffs on some Indian goods to as high as 50% — among the steepest faced by any US trading partner. The move is expected to hit key Indian export sectors including textiles, footwear, and gems and jewellery and marks the most serious downturn in US-India relations since Trump returned to office in January. It also comes as Indian Prime Minister Narendra Modi prepares for his first visit to China in over seven years, suggesting a potential realignment in alliances as ties with Washington fray.

Elsewhere Swiss president Karin Keller-Sutter said on Wednesday she had a "very good meeting" with US Secretary of State Marco Rubio, after the pair discussed tariffs that the United States plans to impose on Swiss imports.

"We had a very friendly and open exchange," Keller-Sutter told reporters after the meeting in Washington.

Keller-Sutter did not answer a question from reporters about what further offers Switzerland would make to avert a planned 39% import duty on its products going into the United States.

Reuters