How Apple is using a familiar strategy to avoid Trump's tariffs
San Francisco – Apple chief executive officer Tim Cook is using a familiar strategy to stay in Donald Trump's good graces: expanding existing initiatives to show he supports the president's 'Made in the USA' agenda.
Standing in the Oval Office on Aug 6 between Mr Trump and Vice President JD Vance, Mr Cook announced that Apple will increase its US investment commitment to US$600 billion (S$771 billion) over four years – up from the US$500 billion pledged after Mr Trump's second-term victory.
A centrepiece of the expansion is a US$2.5 billion investment into Corning, Apple's longtime glass supplier. For the first time, the cover glass for all iPhones and Apple Watches will be manufactured in the United States, at Corning's facility in Kentucky. Though Apple has touted the US roots of iPhone glass before, a portion of that glass was previously made overseas.
The iPhone maker also discussed increased agreements focused on semiconductor manufacturing, expanding deals with partners like Samsung Electronics, Texas Instruments and Broadcom. Apple is branding the effort the American Manufacturing Program, or AMP.
In all, the announcements provided just enough evidence that Apple was focusing on America – without forcing it to make major changes. Corning has supplied Apple since the first iPhone in 2007, and Mr Cook has long promoted the iPhone's American-made glass. What's new is the modestly increased scale.
Apple is pointing to the deals as it seeks relief from looming tariffs. The Trump administration is letting exemptions on smartphone and gadget levies expire and adopting new duties on Indian imports – a potential issue for Apple, which recently shifted US-bound iPhone assembly to India.
Mr Cook even seized on Mr Trump's famous love of gold. He presented the president with a large, circular Corning glass plaque engraved with the president's name, mounted in 24-karat gold. The Apple CEO said that the glass came off an assembly line in Kentucky while the gold was produced in Utah. Mr Cook added that a former US Marine who works at Apple designed the plaque.
Top stories
Swipe. Select. Stay informed.
Singapore Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking funds
Singapore PUB investigating wastewater discharge in Eunos: Pritam
Singapore Water gel guns among newer tools NParks uses to manage monkeys in estates
World Trump eyes 100% chips tariff, but 0% for US investors like Apple
Singapore ST and Uniqlo launch design contest for Singapore stories T-shirt collection
Business DBS shares hit record-high after Q2 profit beats forecast on strong wealth fees, trading income
Business UOB Q2 profit drops 6% to $1.34 billion, missing forecast
World White House says Trump open to meeting Russia's Putin and Ukraine's Zelensky
Mr Trump, meanwhile, announced a major enticement: He said that companies investing in the US – even if the projects are in early stages – would get a break from some tariffs.
'The good news for companies like Apple is, if you're building in the United States, or have committed to build,' Mr Trump said, 'there will be no charge.'
Apple's pledges are expected to meet that criteria, even if it isn't actually making iPhones and other popular devices in the US. Assembly of the smartphone – a costly and complex process of combining components, testing and boxing devices – will continue in China and, increasingly, India.
That part will stay 'elsewhere for a while,' Mr Cook said. But 'there's a lot of content in there from the United States, and we're very proud of it.'
Trump acknowledged that assembly was 'set up in other places, and it's been there for a long time,' but he reiterated his desire to bring that stage of production to the US someday.
'This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America also are made in America,' he said.
The announcements by Apple CEO Tim Cook provided just enough evidence that the tech giant was focusing on America – without forcing it to make major changes.
PHOTO: REUTERS
Trump's existing tariffs have already taken a toll on Apple. It said last week that the levies will cost the company about US$1.1 billion in the September quarter. But Apple is looking to avoid incurring further costs, especially as it prepares to unveil the iPhone 17 line next month.
Mr Cook is also likely seeking support from Mr Trump on other fronts: The US Justice Department is suing the company for alleged antitrust violations, and the agency is threatening its US$20 billion search deal with Alphabet's Google in a separate case. The US government also could potentially help Apple cope with tough new restrictions on the App Store in the EU.
This isn't the first time Apple has used US manufacturing announcements to promote Mr Trump's priorities. In 2019, the company promised to assemble a new Mac Pro in Texas. It wasn't a big change: Apple had produced the previous model in the state since 2013. But that gesture helped land the company a reprieve from tariffs.
Earlier in 2025, after Mr Trump's return to office, Mr Cook unveiled the initial US$500 billion commitment – an acceleration of the investments Apple had begun under President Joe Biden. At that time, Apple announced it would start making AI servers in Houston.
Mr Cook said on Aug 6 that the first test units rolled off that factory's assembly line last month.
'We're going to keep building technologies at the heart of our products right here in America,' he said. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
11 minutes ago
- Straits Times
North Korean rescued after swimming across border
Sign up now: Get ST's newsletters delivered to your inbox Tens of thousands of North Koreans have fled to the South since the peninsula was divided by war in the 1950s. Seoul - A North Korean defector who swam across a sea border with South Korea while reportedly tied to floating plastic has been rescued and taken into custody, Seoul authorities said on Aug 7. The North Korean managed to swim across the de facto maritime border off the western coast of the Korean peninsula on the night of July 30, South Korea's Joint Chiefs of Staff said. The border is known as the Northern Limit Line and has occasionally served as a route for North Korean defectors swimming to South Korea's Ganghwa Island. 'The military identified the individual near the north of the mid-river boundary,' a military official told reporters. The individual, who local media reported was tied to Styrofoam when he was found, waved for help and said he wanted to defect to South Korea when asked by a South Korean naval officer, the official said. The operation took about 10 hours, according to Seoul, and the individual was rescued at around 4am on July 31. The North Korean is now in custody and has expressed their wish to defect, the defence ministry said. Top stories Swipe. Select. Stay informed. Singapore Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking funds Singapore PUB investigating wastewater discharge in Eunos: Pritam Singapore Water gel guns among newer tools NParks uses to manage monkeys in estates World Trump eyes 100% chips tariff, but 0% for US investors like Apple World Trump's 100% semiconductor tariffs may hit chipmakers in Singapore, other SEA nations Business DBS shares hit record-high after Q2 profit beats forecast on strong wealth fees, trading income Business UOB lowers outlook on tariff impact after 6% drop in Q2 profit; shares fall 1.7% Singapore SCDF officer who molested female subordinate gets 15 months' jail Ganghwa Island, located northwest of Seoul, is one of the closest South Korean territories to North Korea, with some parts of the surrounding sea lying just 10km from the maritime border between the two countries. Tens of thousands of North Koreans have fled to the South since the peninsula was divided by war in the 1950s, with most going overland to neighbouring China first, then entering a third country such as Thailand before finally making it to the South. Defections across the land border that divides the peninsula are relatively rare, as the area is densely forested, heavily mined and monitored by soldiers on both sides. But a North Korean man defected in July to the South by crossing the Military Demarcation Line. The number of successful escapes dropped significantly from 2020 after the North sealed its borders – purportedly with shoot-on-sight orders along the frontier with China – to prevent the spread of Covid-19. North Koreans are typically handed over to Seoul's intelligence agency for screening when they arrive in the South. AFP
Straits Times
11 minutes ago
- Straits Times
Tokyo Electron sacks Taiwan employee over TSMC tech leak
Sign up now: Get ST's newsletters delivered to your inbox Taiwanese media have reported that the leaked information was related to TSMC's most advanced 2-nanometre chip technology. Taipei - Tokyo Electron said on Aug 7 it has fired an employee at its Taiwan subsidiary over their alleged involvement in a trade secret leak at Taiwanese chipmaking giant TSMC. The Japanese firm issued a statement after media reports said Taiwanese authorities had searched its Hsinchu office as part of a probe into the breach. Six people were arrested after TSMC discovered the leak involving 'national core technology' in July, Taiwan's High Prosecutors Office said this week. TSMC is the world's largest contract chip manufacturer and counts Nvidia and Apple among its clients. Taiwanese media have reported that the leaked information was related to TSMC's most advanced 2-nanometre chip technology. A former employee and two current TSMC staff members have been detained, while two other employees were released on bail and another freed without any conditions, prosecutors said. The sacked Tokyo Electron staff member previously worked for TSMC and is among those detained, a source with knowledge of the investigation told AFP. Top stories Swipe. Select. Stay informed. Singapore Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking funds Singapore PUB investigating wastewater discharge in Eunos: Pritam Singapore Water gel guns among newer tools NParks uses to manage monkeys in estates World Trump eyes 100% chips tariff, but 0% for US investors like Apple World Trump's 100% semiconductor tariffs may hit chipmakers in Singapore, other SEA nations Business DBS shares hit record-high after Q2 profit beats forecast on strong wealth fees, trading income Business UOB lowers outlook on tariff impact after 6% drop in Q2 profit; shares fall 1.7% Singapore SCDF officer who molested female subordinate gets 15 months' jail Tokyo Electron is a major producer of chipmaking equipment used by TSMC, winning the 2024 TSMC Excellent Performance Award for both 'technology collaboration and production support'. Another client is Japanese chipmaker Rapidus, which is building a plant in Hokkaido to make 2-nanometre chips. Rapidus chairman Tetsuro Higashi is a former president of Tokyo Electron. Tokyo Electron said it sacked its staff member after they were 'confirmed to be involved in an incident announced by Taiwanese judicial authorities on Aug 5'. 'The company has terminated their employment and is fully cooperating with the investigation by Taiwanese judicial authorities,' Tokyo Electron said. 'An internal investigation has revealed no leaks of confidential information so far.' In a statement, TSMC said it had taken 'strict disciplinary actions against the personnel involved' in the 'potential trade secret leaks'. TSMC did not provide details about the technology involved in the suspected leaks. AFP
Business Times
11 minutes ago
- Business Times
Trump tariffs kick in today. How will Singapore, South-east Asia be affected? Here's what you need to know
[SINGAPORE] A few rounds of tariff rates have been announced this year, as US President Donald Trump set initial baseline rates and countries scrambled to reach new deals. Trump had set a pause on country-specific tariffs, which initially was to expire on Jul 9; it then sent South-east Asian countries and China scrambling to secure last-minute deals and protect their economies from trade shocks. He then signed an executive order last week with changes to some country rates. US duties rose from 10 per cent to levels between 15 and 41 per cent for a list of trading partners. These higher rates came into effect for dozens of economies on Thursday (Aug 7). In South-east Asia, countries were initially faced with huge tariff rates. Vietnam was slapped with a 48 per cent tariff rate, but was revised down to 20 per cent in July. However, a 40 per cent 'transhipping' tariff on goods that originate from another country and then sent to Vietnam before being shipped to the US will still take effect. Indonesia also had its rate cut from 32 per cent to 19 per cent. The White House said Indonesia will eliminate tariff barriers on over 99% of U.S. products exported to Indonesia across all sectors, including for all agricultural products, health products, seafood, information and communications technology and others. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Singapore has a baseline rate of 10 per cent, but Prime Minister Lawrence Wong said it's a rate that the country 'can live with.' In the rest of the region and the world, many products from economies such as the European Union, Japan and South Korea now face a 15 per cent tariff, even with deals struck with Washington to avert steeper threatened levies. China's original tariff rate was 145 per cent, but an earlier agreement revised it to 40 per cent. Talks are still ongoing between the US and China, with a deadline of Aug 12. Here's a look at the latest tariff rates in the region. In terms of sectoral tariffs, Trump announced on Thursday that he would impose a 100 per cent tax on imports that include semiconductors, though companies moving production back to the US would be exempted. Some chips that are made in Singapore will likely be affected. RHB analysts earlier in August said that Singapore faced threats due to potential sectoral tariffs on semiconductors and pharmaceuticals. They added that 'Singapore continues to be the most exposed' in Asean, citing its high trade openness and reliance on manufacturing exports. - With additional reporting from Bloomberg
