Onshoring

 

Apple Goes MAGA: $500 Billion Investment Plan In America, 20,000 New Jobs

The latest onshoring trend, spurred by President Donald Trump's tariffs on Chinese imports, has led to a major announcement from Apple. The company has embraced "Make America Great Again" with plans to hire 20,000 US workers to manufacture high-tech AI servers in the Heartland and invest hundreds of billions of dollars in new factories. 

Bloomberg reports Apple plans to unleash a tsunami of investments in the US, upwards of $500 billion over the next four years, including a new AI server manufacturing plant in Houston, Texas, and a supplier academy in Michigan. 

This disclosure comes just days after President Trump announced that Apple CEO Tim Cook plans to relocate manufacturing operations from Mexico to the US. 

"He's investing hundreds of billions of dollars," Trump said after his meeting with Cook at the end of last week, adding that the executive is ramping up US investments because he wants to avoid tariffs. 

Earlier this month, Trump imposed a 10% US levy on Chinese imports, where Apple manufactures most of its iPhones, iPads, Macs, and other products. In a tit-for-tat effort, Beijing announced retaliatory tariffs on US goods shortly after. 

Apple's $500 billion investment and promise to add 20,000 new US jobs over Trump's second term is more evidence that corporate America is more willing to participate in onshoring efforts this time. 

Trump responded on Truth Social to the good news: 

APPLE HAS JUST ANNOUNCED A RECORD 500 BILLION DOLLAR INVESTMENT IN THE UNITED STATES OF AMERICA. THE REASON, FAITH IN WHAT WE ARE DOING, WITHOUT WITCH, THEY WOULD'NT BE INVESTING TEN CENTS. THANK YOU TIM COOK AND APPLE!!! 

CEO Cook released a statement: 

"We are bullish on the future of American innovation, and we're proud to build on our long-standing US investments with this $500 billion commitment to our country's future. We'll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation."

Apple has already increased its reliance on domestic production by partnering with Taiwan Semiconductor Manufacturing. The chipmaker is building factories in Arizona to produce semiconductors, including ones for the iPad and iWatch. 

For context, Cook met with the president at the Mar-a-Lago Club in Palm Beach, Florida, shortly after the November election and attended his inauguration in Washington last month. 

Notably, Trump's initial trade war, which started during his first term, sparked discussions among corporate America about "onshoring" trends during earnings calls.

Trump's tariff war—now driving a revival of domestic manufacturing after more than half a century of deindustrialization—could very well be the inflection point that shifts the nation out of decades of crises and into a new so-called "turning" of success, lifting the middle class into an era of sustained prosperity.

via zer0hedge