What Apple's $100 billion US pledge really means — and what it doesn't mean

During Donald Trump's first term, Apple CEO Tim Cook built a relationship with the president, in part via photo opportunities like this tour of a Texas plant that made Apple computers in 2019.MANDEL NGAN/AFP via Getty ImagesApple is going to spend another $100 billion investing in US facilities.That's on top of a $500 billion pledge the company made earlier this year.Is that a lot? Sort of. Is it a move to make iPhones in the US? Not at all.At a White House event scheduled for Wednesday afternoon, Apple is going to announce plans to invest $100 billion in US manufacturing.Is this a real plan, with real money? A bit of stagecraft designed to give Donald Trump a public win for his reshoring push? Or a way for Apple to keep on the right side of Trump tariffs that could cause great harm to the company?Yes. And yes. And yes.Here's what we know about Apple's plans, via news reports and the White House press office. (Apple hasn't responded to a request for comment, but the White House was happy to confirm the reports in advance of the event, which is supposed to feature both Trump and Apple CEO Tim Cook.)In February, Apple said it would invest $500 billion and hire 20,000 US employees over the next four years.Now Apple is going to add another $100 billion to that commitment, though there's no word about any potential hiring increase.But this isn't the first time Apple has announced a pledge like this. In 2021 — when Joe Biden was president — it announced a plan to invest $430 billion in the US over five years and hire 20,000 employees. Some of those plans involved new construction, like a new "engineering hub" in North Carolina. Others involved expansions of existing facilities, or construction that was already underway, like a $1 billion campus in Austin.As Bloomberg notes, Apple's announcement from February was really an acceleration of its earlier plans — it meant Apple was planning to spend an extra $39 billion a year, and to increase its hiring plans by 1,000 people a year.Using that same logic, Apple's Wednesday announcement means it is planning on spending another $25 billion a year above its earlier plans. (Again: No word, yet, about any additional hiring.)So that's definitely some additional spending.Will Apple make iPhones in the US?Does that mean Apple is going to start making iPhones in the US, as Trump has demanded?No. As we've discussed before, recreating the supply chain Apple would need to make iPhones in the US seems close to impossible. And certainly not something that Apple could pull off in a few years — if it even wanted to.But getting to stand next to the CEO of one of the world's most valuable companies, while that CEO says he's going to invest in America, is most definitely valuable to Trump.And it's not as if any particular number means much to Trump, who recently announced he was going to reduce drug prices by "1,500 percent," which is definitely not possible.Trump is also flexible when it comes to announcements about Trump-directed spending in America. Like when he stood next to Cook during his first term and announced that Apple had opened a new plant in Texas at his behest. Also not true.What does Apple get in return? It would most obviously like permanent relief from Trump's tariffs. So far, Trump has granted Apple some immunity from some of his tariffs on foreign manufacturing — but not all of them, which is why Apple has said it will have paid some $2 billion in tariffs over its last two quarters.Apple and other tech companies are also hoping Trump will keep pushing on their behalf to beat down other countries' tech regulations. Apple is particularly vexed by the European Union, which has forced the company to do things like change its iPhone chargers and open up its App Store.So yes: Apple is spending money in the US. And no: It's not exactly the story Donald Trump would like to tell.Read the original article on Business Insider

Comments

Business News

Chipotle, Sweetgreen bet big on small, local farmers amid ongoing agriculture crisis

Newyork Post

I'm a pediatrician with 2 sons. Here's how I keep my family healthy during back-to-school and 3 key items I always have on hand.

about 2 hours ago

Trump's Truth Social is getting its own AI search engine — powered by Perplexity

insider

I spent a year traveling around Europe to find where I wanted to live. After several misses, I've settled into my dream city.

about 4 hours ago

insider

I watched 3 hours of Palantir employee videos to learn about their 'artist colony' culture — here's what stood out

about 4 hours ago

$Nvidia warns that any GPU 'kill switch' or 'backdoor' into its AI chips would 'fracture trust in US technology'$

insider

Comments

Business News

Chipotle, Sweetgreen bet big on small, local farmers amid ongoing agriculture crisis

Elon Musk’s ‘spicy’ upgrade to Grok spits out deepfake clip of Taylor Swift dancing topless: report

Get the lowdown on equities vs bonds

ISAs compared: the lowdown on cash ISAs vs stocks and shares ISAs

Compounding explained: Discover how your investment can keep on giving

ISAs: from types to benefits, all you need to know

Feds Greenlight Amazon’s Zoox To Operate Robotaxis With No Steering Wheel Or Pedals

Here’s The Exact Time ‘Call Of Duty: Black Ops 6’ And Warzone Season 5 Starts And What To Expect

Netflix Film Looks At How Ed Sullivan Battled Racism & Influenced American Culture

N.J. Prosecutor Who Replaced Alina Habba Fights ‘Unjustified’ Trump Administration Firing, Report Says

FC Barcelona Strips Ter Stegen Of Captaincy, Reports Catalunya Radio

The Treasury Is Sitting On A $750 Billion Gold Hoard–Officially Valued At $11 Billion

Jussie Smollett Returns To Fox For ‘Special Forces’ Following Allegedly Staged Hate Crime

Bank of America juniors will be reassigned &mdash; but not fired &mdash; if they accept PE jobs

Why 2025 might be a good year to buy a home after all

What Apple's $100 billion US pledge really means &mdash; and what it doesn't mean

I'm a pediatrician with 2 sons. Here's how I keep my family healthy during back-to-school and 3 key items I always have on hand.

Trump's Truth Social is getting its own AI search engine &mdash; powered by Perplexity

A South Korean shipyard just picked up a new repair job from the US Navy as it turns to allies to help fix the fleet

Vibe coding is the future &mdash; just don't trust it (yet)

I walk to Trader Joe's every week to shop for my family of 4. These 10 items always make it into my cart.

Mexico’s Sheinbaum says ‘no need’ for bilateral trade deal with Canada

Calgary small business blames ongoing construction for forcing it to shut its doors

Gordon Brown backs gambling tax reform to tackle child poverty

Purple pavement markings part of Mind the Grab campaign to tackle phone theft

US auctioning seized $325M Russian superyacht with 8 state rooms, helipad, gym & spa

Claire's, known for piercing millions of teens' ears, again files for Chapter 11

The website that helps reunite people with unclaimed cash prizes

Mike Trout’s N.J. Golf Oasis Nears Completion: A First Look

Ice Cube’s ‘War Of The Worlds’ Gets 0% Rotten Tomatoes Score—And Faces Mockery On Social Media

‘The Pickup’: Rotten Tomatoes Critics Splatter Eddie Murphy Heist Film

How The Union Pacific-Norfolk Southern Deal Would Boost Petrochemicals

Democrats Use TV Appearances To Accuse Republicans Of Cheating To Hold Power

ESPN Sets Launch Date For $30 Streaming Service After Acquiring NFL Networks

Why Trucking Defense Attorneys Must Adapt For Gen Z

WWE-ESPN Billion-Dollar Deal Grows Wrestling’s Global Reach More Than Ever

American Eagle-Sydney Sweeney Controversy: AEO Is Laughing All The Way To The Bank

Inside The Immersive Activations That Stole The Show At SDCC 2025

Here’s When The ‘Battlefield 6’ Open Beta Starts And How To Play Early For Free

Texas Gov. Wants Democrats Who Left State Kicked Out Of Office. Can He Legally Do It?

Clearance sale offers gardeners last chance to buy stylish faux lead planters for £30 less

I tried 5 frozen acai packs from the grocery store to see which produced the best homemade smoothie bowl

KFC and Taco Bell are doubling down on Gen Z

The Disney World vs. Epic Universe battle is looking like a win-win &mdash;&nbsp;so far

I spent a year traveling around Europe to find where I wanted to live. After several misses, I've settled into my dream city.

I watched 3 hours of Palantir employee videos to learn about their 'artist colony' culture &mdash; here's what stood out

Nvidia warns that any GPU 'kill switch' or 'backdoor' into its AI chips would 'fracture trust in US technology'

Gordon Brown backs gambling tax reform to tackle child poverty

India, Once America’s Counterweight to China, Is Now Facing Trump’s Wrath

Blue chips in favour ahead of likely Bank of England interest rates cut

Claire’s files for bankruptcy for second time as it drowns in ‘cocktail of problems’

This 20-Year-Old Movie—With Bad Reviews—Just Jumped Into Netflix’s Top 10 Chart

Eminem Reaches A Longevity Milestone For The Third Time

Elton John’s Recent Album Returns, And It’s Bigger Than Ever

Shedeur Sanders Projected To Start Against The Carolina Panthers In Preseason

‘The Summer I Turned Pretty’ Season 3 Episode 5 Recap: Conrad’s POV Changes Everything

Billy Joel And Happy Gilmore Show Enduring Power Of Gen X And Boomers

InnovationRx: Trump Escalates Demands That Drug Companies Lower Prices

Taylor Swift’s ‘Reputation’ Outperforms Her Other Albums — Twice Over

How Newcastle United Can Emerge Stronger From Benjamin Sesko Rejection

Bank of America juniors will be reassigned — but not fired — if they accept PE jobs

What Apple's $100 billion US pledge really means — and what it doesn't mean

Trump's Truth Social is getting its own AI search engine — powered by Perplexity

Vibe coding is the future — just don't trust it (yet)

The Disney World vs. Epic Universe battle is looking like a win-win — so far

I watched 3 hours of Palantir employee videos to learn about their 'artist colony' culture — here's what stood out