Apple CEO Tim Cook headed to the White House this week to pony up another $100bn investment in US manufacturing as Donald Trump continues to push tech and other firms to onshore supply chains.

The commitment came as Trump mused about imposing 100 percent tariffs on imports of semiconductors – unless the companies in question ramped up manufacturing in the US.

Apple had already committed to investing $500bn in US manufacturing.

Yesterday, Cook said, “We’re proud to increase our investments across the United States to $600 billion over four years and launch our new American Manufacturing Program.”

This means Apple has staked more cash in boosting US manufacturing than any other US firm – though it is still in fourth place overall, behind UAE, Quatar and Japan.

Cook said Apple’s strategy included “New and expanded work with 10 companies across America. They produce components that are used in Apple products sold all over the world, and we’re grateful to the President for his support.”

The Apple boss highlighted a partnership with Corning that will see the cover glass for every iPhone and Apple watch manufactured in Kentucky, otherwise known as the Bluegrass state.

Apple also flagged that the first test unit had rolled off the line at its newly built server manufacturing plant in Houston. Mass production will begin in 2026.

It said that two thirds of the components it makes in the US are exported to customers outside the country.

The iPhone and Mac maker has been under pressure from the White House to bring manufacturing back to the US – or at least pull it out of China. It had been shifting some iPhone production to India.

However, Trump this week hit India with tariffs of 50%, due to come into force later this month, because of the country’s continued purchases of Russian oil.

And Trump further complicated matters for the tech and consumer sectors when he announced during the meeting with Cook that, “We’ll be putting a tariff of approximately 100% on chips and semiconductors.”

He added, if firms were “building” in the US, “There’s no charge.” Even a “commitment to build” would mean a free pass.

That could be critical, as building a chip fab takes years, not months. It’s hard to see how any high-end chip vendor could get a line up and running from scratch before the end of Trump’s current stint in the White House.

Many overseas players would be exempt, as they already have some operations in the US and plan more.

But it would be disastrous for others, and have knock-on effects on prices of tech goods and services, including consumer goods, cars, and anything else that requires a chip.

Back in May, the ITIF warned that a blanket 25% tariff on semiconductors would mean a 0.18% downturn in U.S. economic growth in the first year, “and if sustained over 10 years, would result in a 0.76% slowdown in U.S. economic growth in the 10th year.”

It added that by the tenth year, “Americans would forego a cumulative total of $4,208 worth of growth in their living standards.”

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