Apple responds to tariff threats with major U.S. investment
Apple has announced a massive $100 billion plan to expand manufacturing in the United States. This major decision comes after growing pressure from U.S. government leaders to bring more of its production back home. The company had earlier planned to invest $500 billion in the U.S. over the next four years. This new announcement adds to that plan, with a clear focus on making more Apple products and components in the U.S.
The tech giant has introduced a new American Manufacturing Program. Apple launched this initiative to strengthen its supply chain and advanced manufacturing within the U.S. The company says the move will help reduce its dependency on other countries and increase its manufacturing footprint across several U.S. states.
Working more closely with Corning, its longtime collaborator, is a key component of this strategy. Apple has agreed to make 100% of the cover glass for iPhones and Apple Watches in Kentucky. This glass is what protects the front of the devices, making this move an important part of the production process.
Another big update involves chip production. Apple will work with Samsung at a facility in Austin, Texas. Apple and Samsung will use a new and advanced technology to make chips a process Apple says has never been used anywhere else in the world.
New factories, training programs, and partnerships in the U.S.
Along with increasing its U.S. manufacturing, Apple is also opening new facilities and expanding current ones. Apple expects a new server factory in Houston, Texas, to begin mass production in 2026. Servers are powerful computers that help Apple’s services and apps run smoothly for users around the world.
Additionally, Apple plans to expand its Maiden, North Carolina, data center. Data centers store and manage large amounts of information, so this step will help support Apple’s growing services like iCloud, Apple Music, and more.
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Last month, Apple also revealed it would open a manufacturing academy in Michigan. The goal of this academy is to train U.S.-based companies and workers in advanced manufacturing techniques. Apple expects this training to help more American businesses join its supply chain in the future.
These steps are seen as a direct response to the recent rise in trade tensions. In recent years, Apple has moved some of its manufacturing operations to countries like Vietnam and India. This was done to reduce the risk of tariffs and supply chain delays. However, U.S. leaders have expressed concerns and pushed for Apple to bring those operations back to the U.S.
Tariffs and costs continue to rise for Apple
One of the major reasons behind Apple’s recent decision is the increasing cost of tariffs. The company revealed that new tariffs may add an extra $1.1 billion in costs during the September quarter. This would be on top of the $800 million Apple has already spent on these taxes.
The U.S. is applying tariffs to products and parts coming from several countries, including Vietnam and India. Manufacturers in Vietnam currently produce many Apple products like Macs, iPads, and Watches. In India, factories make the majority of iPhones for the U.S. market, which now face new 25% tariffs.
In the past, Apple had faced similar issues and tried to avoid high tariffs by manufacturing some products in the U.S.
The company’s latest manufacturing push is being presented as a way to build a complete chip production system in the U.S. This includes everything from design to equipment, wafer production, fabrication, and packaging. Apple says it will continue to work with U.S. suppliers to move more high-tech production to the country.
This large-scale shift is seen as a strong move to meet the rising costs and political pressure. Apple is aiming to protect its product pricing, supply chain, and business operations by making more of its devices in America.
