Tim Cook Reportedly Tells Trump Apple Will Invest 'Hundreds Of Billions' In US: 'They Don't Want To Be In The Tariffs' – Benzinga

Apple Inc. AAPL CEO Tim Cook has reportedly pledged a significant investment in the United States and a shift in manufacturing from Mexico to the U.S. President Donald Trump made this announcement during a meeting with governors.

What Happened: After meeting Cook at the White House this week, Trump revealed that the Apple CEO had assured him of moving iPhone maker’s manufacturing from Mexico to the U.S.

“He’s investing hundreds of billions of dollars… That’s what he told me. Now he has to do it,” Trump said.

Trump also mentioned that Cook had halted two plants in Mexico and would now be producing Apple products in the U.S. However, Cook has not yet publicly announced any such investment.

“They don’t want to be in the tariffs,” Trump said.

See Also: Apple Stock Has Run Up Over 10% In A Month, Jim Cramer Says iPhone Maker Is ‘Ramping’ And The Credit Goes To Chinese Subsidies

It’s unclear which manufacturing facilities Trump was referring to. Foxconn Technology Group, the maker of Apple’s iPhones, already has a strong presence in Mexico and plans to expand further.

Apple did not immediately respond to Benzinga’s request for comment.

Why It Matters: The news of Apple’s potential shift in manufacturing and significant U.S. investment comes at a crucial time for the tech giant. Like other tech giants, Apple is grappling with rising U.S.-China trade tensions. Trump’s 10% tariff on Chinese-made goods poses a significant challenge, as China remains Apple’s primary manufacturing hub, and the U.S., is its largest market.

According to an analyst at Bank of America, the iPhone maker will need to hike prices on iPhones, iPads, and other products by approximately 9% to counter the effect of tariffs. assuming a minimum 10% tariff applies to all of them. The analyst also expects a potential hit on the sales volume.

On Wednesday, Apple unveiled the iPhone 16e, a budget-friendly successor to the third-generation iPhone SE. Priced at $599, the device is designed to run artificial intelligence efficiently.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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