Donald Trump Pressure extracts $ 100 billion in apple investment

Apple plans to strengthen investments in the United States by an additional $ 100 billion (75 billion pounds sterling) while the technology giant is under pressure from President Donald Trump.

The White House said that money would be used to encourage companies to manufacture more apple parts in the United States and add to the company’s previous commitment to spending $ 500 billion in the United States for four years.

He comes after Trump chose Apple by name earlier this year, threatening to increase prices on his products if he did not move the manufacturing of iPhone in the United States.

Apple CEO Tim Cook refers to the company’s previous commitment and said he was trying to “do more” because he tries to avoid a wave of prices ready to hit his products.

Apple was contacted to comment on Wednesday’s investment announcement.

Analysts have said that any significant change in Apple’s supply chain would take time, but the company’s promise could help it gain lighter white house treatment, given the emphasis on Trump on the increase in commercial investments in the United States.

Actions have increased by more than 4% in the morning trade.

In a statement on Wednesday, the White House said that the last commitment of the company was a sign that Trump policies were convincing of companies to put more money in the United States.

“Today’s announcement with Apple is another victory for our manufacturing industry which will simultaneously help reshaped the production of critical components to protect economic and national security in America,” said a White House spokesman.

Apple has long done most of its products in China.

He avoided the functions during Trump’s first term after agreeing to invest more in America, in the announcements she coordinated with the White House.

But he collapsed since Trump launched a new pricing war in January, announcing an additional 30% sample on Chinese manufacturing goods.

Apple responded to changes by reworking its supply chain, sending goods to the United States mainly from India and Vietnam, which are faced with lower prices on their exports.

But the company has still paid more than $ 800 million of new border taxes on its products in the three months completed in June, reflecting the Reciprocal World Twins of Trump, which has been in place since April.

He expects to pay an additional $ 1.1 billion in the coming months, despite the exemptions from the measures that the White House granted certain electrons in April.

With tariffs on Indian manufacturing goods which should increase up to 50%, it has raised tariff worries.

Apple is also preparing for a potential Hit of the White House plans for new prices specific to the semiconductor industry.

Mr. Cook, who personally donated $ 1 million to Trump’s inaugural committee, is expected to announce the investment in the White House on Wednesday.

During the call with investors, Mr. Cook underlined Apple’s involvement in the United States and its long-term work strategy with “third parties” to make investments.

He underlined his plans previously announced to launch a “manufacturing academy” in Michigan, In addition, its commitment to investing $ 500 million in MP materials, which strives to extend rare land production in the United States. The US government has also participated in this company, while engaging at a minimum price for its production.

Since his return to his duties, Trump has often promoted high level of investment commitments by companies like Apple. Analysts say that the figures he uses often seem to be exaggerated and that there is not yet proof of a broader trend.

Paolo Pescatore, founder of PP Foresight, congratulated Mr. Cook for Apple’s skillful navigation through “turbulent times”, but said that it was staying to be seen what the investment would mean for the many different parts that enter the Apple devices and where they were produced.

“Admittedly, if you look at the case today, it is impossible to think that everything could simply be produced, manufactured and assembled in the United States overnight,” he said.