FILE PHOTO: Logo of an Apple store is seen as Apple Inc. reports fourth quarter earnings in Washington, U.S., January 27, 2022. REUTERS/Joshua Roberts/File photo

Apple to pledge $100 billion for US manufacturing, White House official says

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WASHINGTON :Apple Inc will announce a domestic manufacturing pledge of $100 billion 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 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 $500 billion in U.S. 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.

Apple did not immediately respond to requests for comment.

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Trump's tariffs cost Apple $800 million 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 U.S., 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.

The previously announced $500 billion in expected spending from Apple includes everything from purchases from U.S. suppliers to U.S. filming of television shows and movies for its Apple TV+ service.

Nancy Tengler, CEO and CIO of Laffer Tengler Investments, which holds Apple shares, said the announcement would be a "savvy solution to the president's demand that Apple manufacture all iPhones in the U.S.

"The stock is up on the news, likely a relief rally that (Apple CEO Tim) Cook, who has been largely mute in response to the attacks on the company, is extending an olive branch."

Earlier, White House economic adviser Kevin Hassett told Fox Business Network that Apple was likely to make an investment announcement on Wednesday, as he discussed the financial pledges made by companies and countries under Trump.

Source: Reuters

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