Apple plans a $500 billion US investment as tariff threats put iPhone at risk

Apple announced on Monday that it will invest over 500 billion dollars in the United States over the next four years. It also plans to employ 20,000 employees and set up a new server manufacturing facility in Texas.

The announcement comes a few days after the president Donald Trump said Apple CEO Tim Cook Trump promised him that the manufacturing of the tech giant would move to Mexico into China to the U.S. Trump noted the firm was doing this to avoid having to pay tariffs. This pledge, along with Monday's investment pledge occurred at a time when Trump is continuing to warn of imposing tariffs that could raise prices for tariffs on Apple iphone manufactured from China.

"We are bullish on the future of American innovation, and we're proud to build on our long-standing U.S. investments with this $500 billion commitment to our country's future," Cook stated in a blog post posted by the company.

Apple has announced several concrete actions in its announcement. One of the most notable one being the building of a new facility in Houston scheduled to be completed in 2026and will make servers that will provide the power to Apple Intelligence and its array of AI features. Apple claims that the plant is expected to provide "thousands of jobs."

It's similar to the one Apple made in the beginning of 2018, during the initial Trump administration. The announcement stated that it would create 20,000 new employment opportunities in the course of its $350 billion investment within the U.S. Trump was also considering a tariff at the time which could affect Apple iphone tariffs during the period however he didn't end in pursuing the devices in his first term as president.