Under tariff pressure, Apple promises to invest $500 billion in the U.S. over the next four years, creating 20,000 new jobs

To alleviate the tariff pressure brought by U.S. President Trump, Apple Inc. announced an ambitious investment plan in the United States on Monday, committing to invest $500 billion over the next four years and create 20,000 new jobs, which is Apple's largest commitment in the U.S. to date.

Apple stated that the investment plan includes establishing a new server manufacturing facility in Houston, setting up a supplier academy in Michigan, and increasing spending with existing U.S. suppliers. Apple CEO Tim Cook said in a statement:

“We are confident in the future of American innovation, and we are proud to make this $500 billion commitment based on our long-term investment in the U.S.”

After the announcement, Apple's stock price fell 0.74% in pre-market trading.

It is worth noting that a few days ago, Cook met with Trump in the White House Oval Office. According to a previous article by Wall Street Insight, President Trump stated at a meeting attended by governors last Friday that Cook promised him to move the production of Apple products from Mexico to the U.S. Cook also committed that Apple would invest hundreds of millions of dollars in the U.S. Trump revealed that Apple is investing domestically to avoid paying tariffs.

Strategic Initiative 2.0 to Address Trump 2.0 Tariff Pressure

As part of the investment plan, Apple announced it would collaborate with Foxconn Technology Group to begin producing servers supporting Apple Intelligence cloud computing components in Houston later this year. This marks a shift of at least some production from overseas to the U.S.

Moreover, Apple's commitment to create 20,000 new jobs will primarily focus on research and development, chip engineering, and artificial intelligence. The company also plans to open a manufacturing academy in Detroit to help small and medium-sized enterprises enhance their manufacturing capabilities.

This initiative is similar to Apple's strategy during Trump's first term. At that time, Cook successfully persuaded Trump to exempt iPhone tariffs, arguing that it would benefit competitors like Samsung. Apple has also repeatedly announced investment plans in the U.S. and credited Trump for the production of the Mac Pro in Texas.

Analysts pointed out that Apple's move is both a response to the Trump administration's policies and a strategic initiative to protect its own interests. By increasing domestic investment and employment, Apple hopes to avoid potentially high tariffs while maintaining its high profit margins and product pricing strategy