Last week, Apple announced a whopping $500 billion investment plan in the United States, aimed at producing more products in the country. While this move may demonstrate Apple's generosity in creating jobs for Americans, the giant tech firm also has expectations from the Trump administration in return for its recent investment.
According to Bloomberg's Mark Gurman, Apple CEO Tim Cook and Donald Trump may have an unwritten agreement behind the scenes that eventually benefit both sides. Trump gets the hype he wants around his "America First" agenda, and Cook gets a slew of benefits for Apple, which can greatly benefit the company in the long run.
As Gurman says, here is the list of Apple's demands to the Trump administration:
- The reduced risk of tariffs, or at least a reprieve from some of their margin-crushing impact.
- The government to stand up for US tech companies against EU efforts to rein in their power.
- An end to the Justice Department's long-running lawsuit against the iPhone maker.
- Generally good relations between Apple and the federal government.
Apple's $500 billion investment could eventually create 20,000 jobs in the United States over the next four years. The iPhone maker has pledged to establish an AI server manufacturing facility in Houston, Texas, which is due to open in 2026. Apple has also allocated $10 billion to its US Advanced Manufacturing Fund, aiming to support R&D efforts in the US. Additionally, Apple and TSMC have already opened a chip manufacturing facility in Arizona.
A part of Apple's plan to bring production to the US is due to Trump's tariffs on imported goods to the US, especially from countries like China, which is the leading player in Apple's supply chain. This is not the first time a US president has secured investment pledges from Apple. The iPhone maker also announced a $430 billion investment plan in the US during Joe Biden's term.
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