{"id":8706,"date":"2025-02-25T15:26:21","date_gmt":"2025-02-25T15:26:21","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/apple-plans-to-invest-500-billion-in-u-s-as-trump-tariffs-loom\/"},"modified":"2025-02-25T15:26:21","modified_gmt":"2025-02-25T15:26:21","slug":"apple-plans-to-invest-500-billion-in-u-s-as-trump-tariffs-loom","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/apple-plans-to-invest-500-billion-in-u-s-as-trump-tariffs-loom\/","title":{"rendered":"Apple Plans to Invest $500 Billion in U.S. as Trump Tariffs Loom"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Days after Apple\u2019s chief executive met with President Trump, the company <a class=\"css-yywogo\" href=\"https:\/\/www.apple.com\/newsroom\/2025\/02\/apple-will-spend-more-than-500-billion-usd-in-the-us-over-the-next-four-years\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">said on Monday<\/a> that it planned to spend $500 billion and hire 20,000 people in the United States over the next four years and open a factory in Texas to make the machines that power the company\u2019s push into artificial intelligence.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe are bullish on the future of American innovation, and we\u2019re proud to build on our longstanding U.S. investments,\u201d Tim Cook, Apple\u2019s chief executive, said in a statement. The company made similar, smaller pledges during the Biden administration and Mr. Trump\u2019s first term, though it has not yet followed through on some of those promises.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Cook met with Mr. Trump last week. After that meeting, Mr. Trump said Apple would shift production to the United States: \u201cThey\u2019re going to build here instead because they don\u2019t want to pay the tariffs,\u201d he <a class=\"css-yywogo\" href=\"https:\/\/rollcall.com\/factbase\/trump\/transcript\/donald-trump-speech-governors-white-house-february-21-2025\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">said in a speech<\/a> to a gathering of governors.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">With its investment, Apple said it would begin manufacturing artificial intelligence servers at a new 250,000-square-foot facility in Houston next year. Those servers, which will be made by the <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/12\/26\/business\/foxconn-apple-texas-expansion.html\" title=\"\">Taiwanese electronics giant Foxconn<\/a>, will help the company expand its data center capacity in North Carolina, Oregon, Arizona and Nevada.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Apple will continue to make the bulk of what it sells \u2014 iPhones, iPads and Macs \u2014 in Asia. Its overseas manufacturing footprint has been a point of contention with Mr. Trump since before he was first elected president in 2016. For years, he has called on Apple to \u201cstart building their damn computers and things in this country, instead of in other countries.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">As the first Trump administration ratcheted up tariffs on China in 2019, Apple began shifting some of its manufacturing to Vietnam, India and other Asian countries. But it didn\u2019t bring any of that production back to the United States.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Now, Apple is facing tariffs for the first time on iPhones and the threat of tariffs on other products made overseas. The majority of iPhones are made in China, and U.S. tariffs of <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/04\/business\/economy\/trump-tariffs-china.html\" title=\"\">10 percent on all Chinese products<\/a> took effect this month. Mr. Trump has also <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/13\/us\/politics\/trump-modi-musk.html\" title=\"\">threatened reciprocal tariffs on India<\/a>, as well as levies on imports from Canada, Mexico and other major trading partners.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Cook has worked with Mr. Trump in the past to help Apple avoid tariffs. The Trump administration avoided putting levies on smartphones and removed, at Apple\u2019s request, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2020\/03\/23\/technology\/apple-watch-tariffs.html\" title=\"\">a tariff on the Apple Watch in 2020<\/a>.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Gene Munster, managing partner at Deepwater Asset Management, said he expected that Apple would again be spared from tariffs because of its promise to invest $500 billion in the United States.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The investment represents $39 billion in annual spending above what Apple promised to spend on employees and suppliers in the United States in 2021, he said. It is in line with Apple\u2019s average annual increase in U.S. investment to support its growth since 2017. And the 20,000 jobs that Apple said it would add is in line with the number of people it would hire over a four-year span in the United States, as well.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThis is a calculated trade-off for tariffs,\u201d Mr. Munster said. \u201cTrump made it clear: You have to show me some love. The question is: How much is that worth to Apple? And the answer is they would rather spend this money themselves on infrastructure than give it to Uncle Sam.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">He added, \u201cThis is what you have to do to navigate the new world order, and Tim Cook is really good at it.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Apple and the White House didn\u2019t immediately have comment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Apple is the latest in a series of companies to make investment commitments in the United States after Mr. Trump\u2019s election. In December, SoftBank, a Japanese technology company, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/12\/16\/us\/trump-softbank-investment.html\" title=\"\">committed to invest $100 billion in the United States<\/a> and create 100,000 jobs. A month later, SoftBank, OpenAI and Oracle <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/01\/21\/technology\/trump-openai-stargate-artificial-intelligence.html\" title=\"\">pledged to spend $500 billion over the next four years<\/a> on computing infrastructure for artificial intelligence.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Companies have mixed records of fulfilling their promises to Mr. Trump. In 2018, Apple promised to build a campus in a new location <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2018\/01\/17\/technology\/apple-tax-bill-repatriate-cash.html\" title=\"\">as part of a $350 billion investment<\/a>, but it hasn\u2019t yet done so. That same year, its partner <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2018\/06\/28\/us\/politics\/trump-wisconsin-foxconn-harley.html\" title=\"\">Foxconn held a groundbreaking in Wisconsin<\/a> for a $10 billion high-tech campus that would employ 13,000 people. Foxconn has built some buildings but not the promised plant.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">But other companies like Toyota and Nucor, the U.S. steel producer, followed through on promises to invest billions of dollars by building plants in Kentucky that now employ thousands of people.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In 2021, Apple said it would invest $1 billion in North Carolina on a new campus in the Raleigh area. It later paused development of the project. Last year, it said it would develop the campus in the coming years.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Apple\u2019s pledge suggests that it is getting more serious about its A.I. business, Mr. Munster said. Rather than pour tens of billions of dollars into building data centers as Microsoft, Amazon, Meta and Google have done, Apple has struck partnerships with OpenAI, which fields some A.I. queries on iPhones, and rented computing infrastructure from cloud providers.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">To support the A.I. service called Apple Intelligence, the company has developed custom semiconductors for its servers that are strung together in a cloud network that it has said is more private because it\u2019s not stored or accessible, even by Apple.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The Apple servers being made in Houston could accelerate the company\u2019s effort to build out that A.I. offering. Last year, Foxconn purchased a tract of land north of Houston, next to one of its warehouses, which it said would be used for its artificial intelligence business.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The world\u2019s most advanced A.I. servers depend on an intricate network of companies that have spent decades developing specialized tools and processes. They contain chips made by Taiwan Semiconductor Manufacturing Company, which produces the majority of cutting-edge computer chips in Taiwan and depends on machines made by the Dutch company ASML.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">TSMC has also been expanding its manufacturing footprint in the United States. In 2020, the company said it would build a factory in <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/12\/29\/business\/tsmc-phoenix-taiwan.html\" title=\"\">Arizona<\/a>; it quickly announced a second and then a third amid a push from the Biden administration to boost U.S. chip manufacturing. But it also pushed back the start of production in Arizona, saying local workers lacked expertise in installing some sophisticated equipment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Shortly before he left office, President Joseph R. Biden Jr. <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/11\/15\/business\/economy\/tsmc-chips-grant-biden.html\" title=\"\">completed an agreement<\/a> to award $6.6 billion in grants to TSMC. The government said it planned to give TSMC the money in tranches as the company meets milestones. Apple is the facility\u2019s largest customer.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">TSMC has already started making chips for Apple in Arizona.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Apple described its announcement on Monday as its \u201clargest-ever spend commitment.\u201d The $500 billion would go toward manufacturing facilities, data centers and entertainment productions, the company said. Apple employs more than 150,000 people around the world.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Monday\u2019s statement had echoes of prior Apple announcements.<\/p>\n<p class=\"css-at9mc1 evys1bk0\"><a class=\"css-yywogo\" href=\"https:\/\/www.apple.com\/newsroom\/2021\/04\/apple-commits-430-billion-in-us-investments-over-five-years\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Four years ago<\/a>, a few months after Mr. Biden\u2019s inauguration, Apple announced an \u201cacceleration\u201d of its U.S. investments, pledging to spend $430 billion and add 20,000 jobs over five years. <a class=\"css-yywogo\" href=\"https:\/\/www.apple.com\/newsroom\/2018\/01\/apple-accelerates-us-investment-and-job-creation\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">In January 2018<\/a>, during Mr. Trump\u2019s first term, the company said that its \u201cdirect contribution to the U.S. economy\u201d would be $350 billion over five years and that it planned to create 20,000 jobs over that period.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Mr. Trump thanked Apple and Mr. Cook in a <a class=\"css-yywogo\" href=\"https:\/\/truthsocial.com\/@realDonaldTrump\/posts\/114059004456970017\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">social media post<\/a> on Monday. Mr. Trump said the move showed that the company had \u201cfaith in what we are doing.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/02\/24\/business\/apple-tariffs-jobs-investment.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Days after Apple\u2019s chief executive met with President Trump, the company said on Monday that it planned to spend $500<\/p>\n","protected":false},"author":1,"featured_media":8707,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[1076,213,123,482,114,335,1081,113],"class_list":["post-8706","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-apple-inc","tag-artificial-intelligence","tag-computers-and-the-internet","tag-cook","tag-donald-j","tag-factories-and-manufacturing","tag-timothy-d","tag-trump"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Apple Plans to Invest $500 Billion in U.S. as Trump Tariffs Loom - World News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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