Apple to Hire 20,000 U.S. Workers — But Is Its Investment About Avoiding Tariffs?
Trump claims Apple’s $500 billion spending proves his policies are reshoring jobs, but analysts say much of it is routine—and may be aimed at securing tariff exemptions.
Apple has pledged to hire 20,000 U.S. workers.
Interestingly, experts say its $500B investment may be more about trade policy than reshoring jobs.
After meeting with CEO Tim Cook, President Trump claimed credit for Apple’s $500 billion U.S. investment, calling it proof his policies are reshoring jobs.
“We’re going to have a lot of chipmakers coming in, a lot of automakers coming in,” he said. (Washington Post) Part of the investment includes 20,000 new research and development jobs, a move hailed by Trump supporters as a boost for American innovation and high-paying tech positions. (Reuters)
A Jobs Boom or a Tariff Workaround?
While Apple plans to build an AI server facility in Houston and expand its chip commitments with TSMC’s Arizona plant, much of the $500 billion investment is routine spending - payroll, office operations, and Apple TV+ content. Despite Trump’s framing, Apple isn’t moving iPhone production stateside. Most of its products will still be made in China and Asia. (Washington Post)
Analysts say Apple’s investment could be more about securing tariff exemptions than reshoring production.
“Apple’s spending plan is a direct strategy to earn an exemption from tariffs on imports from China,” said William Kerwin, an analyst with Morningstar. “Close to 70% of iPhones are manufactured in China, meaning tariffs could have a large impact on the firm’s financials.” (Washington Post)
Apple previously secured exemptions under Trump, and with new trade restrictions looming, the company may be seeking the same outcome this time around.
Furthermore, Apple has made similar promises before - $350 billion under Trump in 2018, and another commitment under Biden.
Is this a real shift in strategy, just a smart political play or somewhere in between?
Comment your thoughts below.