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Apple Pledges $500 Billion U.S. Investment Amidst Trump Tariff Threats
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Cupertino, California – February 24, 2025 – Apple today announced a commitment to invest $500 billion in the United States and create 20,000 new jobs over the next five years, a move widely seen as a response to escalating trade tensions and pressure from former President Donald Trump. The announcement comes as trump has repeatedly targeted Apple, specifically regarding its manufacturing operations primarily located in China.
Context: Trump’s “America First” Economic Policy
The investment pledge marks a significant shift in Apple’s strategy, historically reliant on overseas manufacturing. Trump has consistently advocated for increased domestic production, notably through tariffs designed to incentivize companies to bring jobs back to the U.S. In recent months, he has implemented wide-ranging tariffs impacting various sectors, including technology. Earlier this year, Trump celebrated a $100 billion investment in U.S. AI data centers from Oracle,SoftBank,and OpenAI,with a stated goal of reaching at least $500 billion in total investment to bolster American innovation in artificial intelligence. Oracle, headquartered in Austin, Texas, and OpenAI, based in San Francisco, California, both subsequently announced expansions of their data center capabilities.
Trump’s approach extends beyond incentives; he has directly confronted companies perceived as not aligning with his “America First” policies. He publicly criticized Walmart, demanding the retail giant absorb the costs of his tariffs rather than passing them on to consumers, stating they should “EAT THE TARIFFS.”
Recent Market Reaction & Tariff Threats
The initial announcement of Apple’s investment was met with positive, though cautious, market reaction. However, Apple’s stock experienced a 3% drop on May 23, 2025, following Trump’s threat to impose a 25% tariff on imported Apple products if the company does not further increase domestic manufacturing. This threat triggered a broader market selloff,highlighting the sensitivity of investors to Trump’s trade policies. Analysts at Goldman Sachs estimate the 25% tariff could reduce Apple’s earnings per share by approximately $2.50.
Apple’s investment will focus on expanding its existing facilities in states like California, Texas, and North Carolina, as well as establishing new research and development centers. Specific areas of investment include semiconductor manufacturing, advanced packaging, and software development.The 20,000 new jobs will span engineering, manufacturing, and support roles.
