Apple announces $500bn investment in the US | Donald Trump News

The move comes on the heels of threats by US President Donald Trump to impose tariffs that would make iPhones made overseas more expensive.

Apple has said that it plans to invest more than $500bn in the United States over the next four years, including plans to hire 20,000 people and build a new server factory in Texas.

The move, announced on Monday, comes just days after US President Donald Trump said Apple CEO Tim Cook promised him that the tech giant’s manufacturing would shift from Mexico to the US. Trump noted the company was doing so to avoid paying tariffs.

That pledge, coupled with Monday’s investment commitment, came as Trump continues to threaten to impose tariffs that could drive up the cost of iPhones made in China.

“We are bullish on the future of American innovation, and we’re proud to build on our long-standing US investments with this $500 billion commitment to our country’s future,” Cook said in a company blog post.

That $500bn includes everything from purchases from US suppliers for products like glass for its iPhones to US filming of television shows and movies for its Apple TV+ service. The company declined to say how much of the figure it was already planning to spend with its US supply base.

The announcement is similar to one Apple made in early 2018 – during the first Trump administration – which promised to create 20,000 new jobs as part of a $350bn spend in the US. Trump was also mulling a tariff then that could have affected iPhones at the time, but he did not end up targeting those devices during his first administration.

“This [latest] pledge represents a political gesture towards the Trump administration,” said Gil Luria, analyst at financial services adviser DA Davidson, who estimated that Apple has already committed to spending more than $150bn per year in the US, including the cost of goods sold and capital expenditure.

“Even without growing that spend very much, they would only need three to four years to meet their obligation”, Luria said.

Apple also said an under-construction new factory in Houston, Texas – slated to open in 2026 – will produce servers to power Apple Intelligence, its suite of AI features that help draft emails and perform other tasks. The company claims this factory will create “thousands of jobs”.

Apple said it will work with Foxconn, formally known as Hon Hai Precision Industry, to build the Houston facility where it will assemble servers that go into data centres to power Apple Intelligence. Those servers are currently made outside of the US.