Apple’s $500 Billion Pledge Could Offset Tariff Impact

Apple plans to invest over $500 billion in expanding its U.S. manufacturing capacity, a move that could help shield the company from the Trump administration’s tariffs.

Given that most iPhones are assembled in China, Apple’s commitment could also improve its chances of securing tariff exemptions. I Photo: Apple

Given that most iPhones are assembled in China, Apple’s commitment could also improve its chances of securing tariff exemptions—something it successfully did during Trump’s first term, Barron’s Daily reported.

Wedbush analyst Dan Ives called the move a strategic effort by CEO Tim Cook to diversify Apple’s manufacturing footprint and “ensure smoother waters for Cupertino.”

The investment includes building a 250,000-square-foot AI-focused factory in Houston and hiring 20,000 employees over the next four years.

It remains unclear how much of the $500 billion represents new spending versus previously announced commitments. In 2018, Apple pledged $350 billion in U.S. investments, including 20,000 new jobs and a new Austin, Texas, campus.

In 2021, the company added another $80 billion for initiatives such as a North Carolina research facility.

Apple says its U.S. operations support 2.9 million jobs, including suppliers. However, the new jobs created by this pledge will primarily be in research and development, silicon engineering, software, and AI—not manufacturing.

The investment also includes funding for Apple Intelligence infrastructure, data centers, corporate facilities, and Apple TV+ productions. Much of this spending was already planned.