Apple shares rose 2.82 percent to $219.26 in after-hours trading after the company committed an additional $100 billion investment in the U.S., easing worries about the impact of Washington’s tariffs on semiconductor imports.
On Wednesday, President Donald Trump said the United States will impose a tariff of about 100 percent on imports of semiconductors but offered a big exemption – it will not apply to companies that are manufacturing in the U.S. or have committed to do so. The move is part of Trump’s efforts to bring manufacturing back to the United States.
For companies like Apple, which have committed to building in the United States, “there will be no charge,” he told reporters in the Oval Office. He warned, however, “if, for some reason, you say you’re building and you don’t build, then we go back and we add it up, it accumulates, and we charge you at a later date, you have to pay, and that’s a guarantee.”
Apple raises total investment commitment to $600 billion
Apple’s new pledge raises its total domestic investment commitment in the U.S. to $600 billion over the next four years. Earlier this year, the company announced it would invest $500 billion and hire 20,000 workers across the country during that period.
The investment announcement highlights Apple’s plans to expand its supply chain and advanced manufacturing presence in the U.S., marking a step toward boosting domestic production. However, it stops short of meeting President Trump’s broader demand for Apple to begin manufacturing iPhones within the United States.
“This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America,” Trump added.
Final assembly of iPhones to remain overseas “for a while”
When asked whether Apple might eventually manufacture complete iPhones in the U.S., CEO Tim Cook emphasized that many key components—like semiconductors, glass and Face ID modules—are already produced domestically. However, he noted that final assembly will continue to take place overseas “for a while.”
In May, Trump threatened to impose a 25 percent tariff on Apple products manufactured overseas, marking a significant shift from his administration’s earlier stance, which had exempted smartphones, computers, and other electronics from previous rounds of tariffs on Chinese imports.
This move, part of Trump’s broader effort to reshape global trade through tariffs, ended up costing Apple $800 million in the June quarter.
Apple’s shares closed 5.09 percent higher in the previous session.
