Apple’s stock saw a 5% increase today following an announcement that the company will boost its U.S. spending and investment over the next four years. CEO Tim Cook and President Donald Trump are scheduled to hold an event at the Oval Office at 4:30 p.m. ET to share the details.
A White House official confirmed to CNBC that Apple’s prior commitment of $500 billion, made in February, will be raised to $600 billion. The announcement is also expected to include a new initiative from Apple called the “American Manufacturing Program”.
The relationship between Cook and Trump has been described as “mixed”. While the President has previously commended Cook, he has also voiced concerns and has pushed for Apple to manufacture its iPhones in the U.S. instead of China or India.
Apple is currently facing higher costs this quarter, exceeding $1 billion, due to tariffs on imports, particularly from China. During an earnings call on August 31, Cook also mentioned that a significant portion of Apple’s products would be subject to new tariffs from a pending Section 232 investigation on semiconductors. Cook stated that Apple would “do more in the United States” and is working to optimize its supply chain.
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