Trump talks with Cook, stating that Apple will invest in building factories in the U.S
Trump spoke with Apple CEO Tim Cook, stating that Apple will invest in building factories in the United States, causing the stock price to rise over 5.5%. This news has excited Wall Street, as the U.S. and China reached a tariff suspension agreement. Although Apple has announced a $500 billion investment, the substantial benefits of policy adjustments for Apple remain unclear, and it still faces pressure from Chinese import tariffs. Experts believe that the difficulty and cost of shifting equipment production back to the U.S. are high
According to the Zhitong Finance APP, on Monday, U.S. President Trump stated that after the U.S. and China reached an agreement to suspend most tariffs for 90 days, he had a conversation with Apple (AAPL.US) CEO Tim Cook. This news not only excited Wall Street but also delighted Apple investors. As of the time of publication, Apple's stock price had risen over 5.5%, surpassing the Nasdaq index's increase of 3.5%.
Trump told the media, "I spoke with Cook this morning, and I think he will 'boost their numbers.' $500 billion, he will build many factories for Apple in the U.S., and we are very much looking forward to it."
In fact, as early as February this year, Apple announced plans to invest approximately $500 billion in the U.S. to expand several of its businesses, including assembling AI servers in Houston.
As one of the world's most valuable technology companies, most of Apple's devices are produced in China, which is also Apple's third-largest sales market. Therefore, any news of a de-escalation in trade friction is interpreted by the market as a positive for Apple.
However, despite the positive news on Monday driving up stock prices, it remains unclear how much substantial benefit this policy adjustment will bring to Apple. In April of this year, some of Apple's core products, such as smartphones and computers, received exemptions from the high tariffs of 145%. However, even the new agreement reached this week still retains a 30% tariff on Chinese imports. Additionally, Apple continues to face a 10% tariff pressure in secondary production locations such as India and Vietnam.
The Trump administration has long hoped that Apple would move the production of devices, including the iPhone, back to the U.S., but most experts believe this is difficult to achieve in reality and would be extremely costly.
Earlier this month, Cook discussed tariff strategies during Apple's earnings call. He stated that Apple is reallocating production of products aimed at the U.S. market from Vietnam and India, but also admitted that the situation after June is "difficult to predict" and was unwilling to speculate further
