Tuesday, February 25, 2025
rewrite Apple's plan to avoid Trump tariffs: Invest $500 billion in US, create 20,000 jobs in 6 to 8 words

rewrite Apple’s plan to avoid Trump tariffs: Invest $500 billion in US, create 20,000 jobs in 6 to 8 words

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Apple has announced that it will invest $500 billion in the United States over the next four years. The Silicon Valley giant also confirmed plans to hire 20,000 new employees, marking its largest domestic investment to date. This move comes after Donald Trump threatened to impose an additional 10% tax on Chinese imports.

An Apple engineer stress tests an iPhone 16e and the new C1 cellular modem at an Apple lab in Sunnyvale, California.(REUTERS)

Many of Apple’s products that are assembled in China could face 10% tariffs, though the iPhone maker previously secured some waivers from China tariffs during the first Trump administration.

Apple made the announcement just days after a meeting between Trump and Apple CEO Tim Cook. Trump, who has consistently urged American companies to shift their production back home, praised the decision.

“He’s investing hundreds of billions of dollars,” Trump said after the meeting last week. He implied that the iPhone maker is investing locally because it does not want to pay tariffs.

Apple’s plan

Apple on Monday said it plans to help bring online a quarter-million-square-foot factory in Texas by 2026 to build artificial intelligence servers and will add about 20,000 research and development jobs across the US.

The plan includes developing a new server manufacturing facility in Houston, a supplier academy in Michigan, and increasing spending with existing US suppliers.

Apple has historically manufactured most of its hardware, including iPhones, in China. However, in an effort to maintain its profit margins and avoid price increases for consumers, the company has strategically invested in US manufacturing in the past. Notably, Apple credited Trump’s administration for Mac Pro production in Texas during his first term.

Additionally, Apple and its partner, Foxconn Technology Group, will begin producing AI servers in Houston later this year. These servers, part of Apple’s Private Cloud Compute system, represent a shift of some production from overseas to the US. A new 250,000-square-foot manufacturing facility is set to open in Houston next year to further these efforts.

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