Apple has announced a fresh $100 billion investment in the US, adding to the $500 billion it already pledged over a four-year period. While the move is framed as a commitment to strengthening domestic supply chains and innovation, it also reflects the mounting pressure on global tech firms to realign in the face of aggressive US trade policies.
The White House says the funding is aimed at encouraging more Apple parts to be made in the US. However, with President Trump threatening to raise tariffs on Apple products unless the company relocates manufacturing from China to the US, the announcement could equally be seen as a strategic move to avoid further penalties.
In recent months, Apple has worked to diversify its supply chain away from China, shifting the bulk of iPhone production for the US market to India, with Vietnam becoming a key site for manufacturing iPads, Macs, Apple Watches, and AirPods. Yet these moves have done little to insulate the company. With the latest wave of tariffs, avoidance has become nearly impossible, as India and Vietnam are also facing rising levies.
To reduce exposure, Apple is now investing more deeply into US infrastructure – a decision shaped more by political pressure than by operational strategy. It is not just about dodging tariffs; it is about future-proofing its access to the American market.
A timeline of investment and escalating tariffs
- 2018: Apple announces a $350 billion investment in the US with plans to create 20,000 jobs
- 2021: The company increases its pledge to $430 billion, maintaining its job creation target
- January 2025: Trump reopens his trade war, introducing a 30% tariff on Chinese imports – prompting Apple to begin a major overhaul of its global supply chain
- June 2025: Apple reports that it paid $800 million in tariffs in the three months ended in June. It forecasts an additional $1.1 billion in costs for the next quarter under the new measures
- August 2025: Apple adds another $100 billion to its US investment commitment, bringing the total to $600 billion. Key initiatives include:
- A new 250,000sq ft server facility in Houston, Texas, due to open in 2026
- A smart glass production line in Harrisburg, Kentucky
- Expanded data centre operations in Arizona, Nevada, Oregon, Iowa, and North Carolina
- A $500 million rare earth magnet deal with MP Materials
- A planned manufacturing academy in Michigan
- Doubling its US manufacturing fund from $5 billion to $10 billion
Despite Apple’s diversification efforts, Trump’s tariff net has widened. Vietnam now faces a 20% levy on exports to the US, with a 40% tariff applied to trans-shipped goods. Indian imports have been hit with a 25% tariff, with talk of an increase to 50%. Taiwanese semiconductors – critical to Apple and firms like NVIDIA – are now subject to a 20% tariff. Even the longstanding de minimis rule, which had exempted low-value shipments under $800 from customs duties, has been scrapped – a blow not just for Asian sellers, but also for US marketplaces like eBay and Etsy.
Apple, like many global firms, is now caught between political pressure and globalised production realities. As tariffs climb, the cost of doing business outside US borders increases – nudging even the world’s largest tech companies back towards domestic soil.
