Trump announces $100 billion new investment pledge from Apple
The new pledge raises Apple's total domestic investment commitment in the us 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 in that period.
The announcement centers on expanding Apple's supply chain and advanced manufacturing footprint in the US, but still falls short of Trump's demand that Apple begin making iPhones domestically.
"Companies like Apple, they're coming home. They're all coming home," Trump told reporters in the Oval Office, moments after Apple CEO Tim Cook gave him a US-made souvenir with a 24-karat gold base.
"This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America," Trump added.
Asked if Apple could eventually build entire iPhones in the US, Cook noted that many components such as semiconductors, glass and Face ID modules are already made domestically, but said that final assembly will remain overseas "for a while".
While the investment pledge is significant, analysts say the numbers align with Apple's typical spending patterns and echo commitments made during both the Biden administration and Trump's previous term.
In May, Trump had threatened Apple with a 25 per cent tariff on products manufactured overseas, a sharp reversal from earlier policy when his administration had exempted smartphones, computers and other electronics from rounds of tariffs on Chinese imports. Trump's effort to reshape global trade through tariffs cost Apple $800 million in the June quarter.
"Today is a good step in the right direction for Apple, and it helps get on Trump's good side after what appears to be a tension-filled few months in the eyes of the Street between the White House and Apple," said Daniel Ives, an analyst with Wedbush Securities.
Apple has a mixed track record when it comes to following through on investment promises.
In 2019, for instance, Cook toured a Texas factory with Trump that was promoted as a new manufacturing site. But the facility had been producing Apple computers since 2013 and Apple has since moved that production to Thailand.
Apple continues to manufacture most of its products, including iPhones and iPads, in Asia, primarily in China, although it has shifted some production to Vietnam, Thailand and India in recent years.
Despite political pressure, analysts widely agree that building iPhones in the US remains unrealistic due to labor costs and the complexity of the global supply chain.
"The announcement is a savvy solution to the president's demand that Apple manufacture all iPhones in the US," said Nancy Tengler, CEO and CIO of Laffer Tengler Investments, which holds Apple shares.
Partners on Apple's latest US investment effort include specialty glass maker Corning, semiconductor manufacturing equipment supplier Applied Materials, and chipmakers Texas Instruments, GlobalFoundries, Broadcom and Samsung.
Apple said Samsung will supply chips from its production plant in Texas for its products including iPhones, while GlobalWafers said it would be supplying 300mm silicon wafers from its Texas plant.
Apple shares closed up 5 per cent on Wednesday. Shares of Corning rose nearly 4 per cent in extended trading, while Applied Materials gained almost 2 per cent.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
an hour ago
- Zawya
South Africa's natural diamonds must gain global appeal amid US tariffs crisis
Mineral and Petroleum Resources Minister Gwede Mantashe has called for the marketing of South African natural diamonds across the world, as the sector faces a decline in demand and price. The local sector now faces an added challenge of a US tariff of some 30%. South African natural diamonds have not been excluded from the US tariff list, while minerals including gold, platinum group metals and coal enjoy exemption. At a stakeholder consultation with the diamond sector, Mantashe said he was 'convinced' that the sector needs an injection of aggressive marketing as a solution. 'Our biggest trading partner is China. The US is the second biggest trading partner for South Africa. With the 30% tariff… you are not going to escape it. I'm very convinced that the marketing of natural diamonds is a necessary intervention because you cannot replace natural diamonds with lab-grown diamonds. 'We must market natural diamonds, but we must produce more natural diamonds, and the beneficiation thereof is quite critical. We must cut and polish market value-added diamonds. Value addition must happen close to the point of production.' The minister encouraged diamond producers to 'express their views' during the session and encouraged a 'flow of ideas' on how the government can intervene. 'We are having this platform today to hear your views. You agree that you want to be part of that agreement of (the) marketing of natural diamonds. Tell us and we will do it. However, we thought we should not do it without talking to (the sector). I am convinced that it's the right intervention. We must market…more aggressively. 'Natural diamonds are competing with lab-grown (ones)… particularly in the West. (Some) 25% of (the) diamond trade in the US is lab-grown. It's very small in China… and India. 'In the West, where there is a big market for natural diamonds, lab-grown diamonds are competing with us aggressively. What do we do? That's the question we are putting to you. Help us think through this issue and give us ideas,' Mantashe said. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
an hour ago
- Zawya
Low global diesel supplies support crude prices despite OPEC+ boost
Low diesel stockpiles worldwide are countering the downward pressure on crude oil prices from rising OPEC+ supply and setting the stage for a third consecutive year of above-normal refining profits. Diesel, the top component of global fuel demand, has been the lone bright spot in an otherwise lackluster oil market this year as refinery closures and a shortage of crude with higher diesel yields have kept inventories below historical norms, analysts said. Meanwhile, demand for the industrial and transportation fuel has been unexpectedly strong because of resilient manufacturing activity and cooling demand due to heatwaves in parts of the world. Tight stocks of diesel have also helped support global oil prices, allowing the Organization of the Petroleum Exporting Countries and its allies to unwind their largest tranche of output cuts months ahead of target, and could justify further supply hikes under discussion. Global benchmark Brent crude futures have rebounded 15% to around $68 a barrel from this year's lows, hit in May when OPEC+ first began unwinding supply cuts. "Tight diesel inventories are providing a very strong floor to oil markets in the mid-$60 per barrel range in the short term," Natasha Kaneva, head of global commodities strategy for J.P. Morgan, told Reuters. U.S. distillate fuel inventories stood at 113 million barrels by August 1, 12% below the five-year average, according to government data. At Europe's Amsterdam, Rotterdam, Antwerp trading hub, independently-held diesel stockpiles slipped under 13 million barrels for the first time since December 2023. The tight market has been something of a surprise after analysts and fuel producers earlier this year anticipated that the opening of new refineries around the world would cause a supply glut. In the latest quarters, however, top global refiners have reported stronger-than-expected profits due to resilient margins. "If I were a trader, I would be very comfortable going long diesel in the months ahead," said Tom Kloza, an analyst for consultancy firm Turner, Mason & Co. REFINERS REJOICE BUT UNCERTAINTY AHEAD Tight stockpiles have pushed diesel refining margins higher in recent months. In the U.S., ultra-low sulfur diesel (ULSD) futures briefly traded at a $40 premium over U.S. crude futures on July 18, the highest since February 2024. The premium is now at about $31, versus the prior five-year average of $30. In Europe, diesel margins stood at $21.13 as of August 5 over Brent futures, after hitting a near one-year high of $26.31 at the end of June. Heavy maintenance activity at existing plants has also weighed on diesel supply, said Energy Aspects analyst Natalia Losada. Looking ahead, however, even more refinery closures are expected in the U.S., especially in California and Europe, and the addition of the big 650,000 bpd Dangote refinery in Nigeria has not been able to offset the reduced capacity. Lower Mexican exports and tightening U.S. sanctions on Venezuela and Russia are also set to restrict availability of medium- and heavy-sour crudes, which have a higher diesel yield, energy economist Philip Verleger said in a note. The U.S. is also pressuring China and India to stop buying oil from Moscow. Agreements underway to resolve U.S. trade disputes could exacerbate the diesel shortage by pushing Asian importers to buy more U.S. crude oil, which has a lower diesel yield, Verleger said. "The Trump administration's trade policies and sanctions will be a major contributor to the tightening market," he said. Still, before the disputes are resolved, U.S. tariffs against its trading partners could slow the global economy, hitting diesel demand, investors said. In Asia, margins have already fallen to nearly a two-month low of $17 a barrel due to softening near-term supply-demand fundamentals, giving back most of the gains recorded since the Iran-Israel conflict escalated in mid-June.
Middle East Eye
an hour ago
- Middle East Eye
Boston Consulting Group modelled plan to 'relocate Palestinians' from Gaza to Somalia
The Boston Consulting Group (BCG) modelled plans to relocate Palestinians from Gaza to Somalia and Somaliland, on behalf of Israeli businessmen looking to redevelop the enclave. People familiar with the work told the Financial Times that the two African states were included among a range of countries that the Palestinians could be deported to. The list also included Egypt, United Arab Emirates and Jordan. The modelling grew out of BCG's work helping to set up the US-backed Gaza Humanitarian Foundation (GHF), which has been widely criticised for the enormous number of people killed at its aid delivery sites. The post-war modelling, when reported, provoked an outcry and the consulting firm publicly disavowed the work, stating that the partner in charge had been told not to do it. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters Relocation plans were based on media reports suggesting Israeli and US officials had held discussions with East African leaders about taking in Palestinian deportees, in return for perks such as their recognition of the breakaway Somaliland as an independent state. The threat of relocation, which US President Donald Trump has said will allow the redevelopment of the Gaza Strip, has been branded ethnic cleansing by rights groups, international bodies and foreign officials. 'By accepting the Gazans who relocate temporarily and voluntarily, a country will get an injection of population that will have an economic benefit that clearly could be significant,' one person familiar with the work told the FT. 'But the countries in the model were not picked based on a knowledge of specific discussions. The idea was to understand the economic issues related to options that President Trump had put on the table.' Why are people protesting against the Boston Consulting Group? Read More » A slide deck associated with the plan reportedly envisaged that 25 percent of Palestinians in Gaza would decide to relocate outside the enclave, with a majority not returning. BCG projected $4.7bn in economic benefits for countries that took in Palestinians during the first four years. It was reported that BCG - which counts Israeli Prime Minister Benjamin Netanyahu among its alumni - became involved with GHF when the US security contractor Orbis engaged the firm to help with a feasibility study for a new aid operation. BCG was reportedly chosen because of its relationship with Phil Reilly, an ex-CIA officer who works at Orbis. As Middle East Eye first reported, Reilly was a senior adviser to BCG for eight years, until six months ago, when he started Safe Reach Solutions, a for-profit security and logistics company guarding GHF's aid hubs in Gaza. The FT has also reported that staff members from the Tony Blair Institute participated in a post-war Gaza project which included plans for a "Trump Riviera" and used financial models developed by BCG.
