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Will there be an iPhone made in the US? Apple will invest $100 billion in the United States to avoid tariffs

Apple, the brand founded by Steve Jobs, is preparing to announce a new $100 billion investment in the United States
APPLE TIM COOK COURTESY
PHOTO: Courtesy Apple

Will there be an iPhone made in the US? Apple is preparing to announce a new $100 billion investment in the United States, aiming to strengthen its domestic production and avoid tariffs imposed by President Donald Trump on tech products manufactured abroad, especially in China.

READ ALSO. Trump’s tariffs drive iPhone panic sales

According to a senior White House official, Apple will announce its commitment this Wednesday, August 6, as part of an official event alongside the federal government. The pledge would include a new program focused on domestic manufacturing and the relocation of key components of its supply chain to U.S. soil.

“The president’s ‘America First’ economic agenda has secured trillions of dollars in investments that support American jobs and businesses,” said White House spokeswoman Taylor Rogers in a statement. She added: “Today’s announcement with Apple is another win for our manufacturing industry that will simultaneously help reshore the production of critical components to protect America’s economic and national security.”

READ ALSO. Apple shatters expectations with its financial results: iPhone drives record revenue

Why does Apple want to manufacture more iPhones in the United States?

The backdrop of this decision is closely tied to Donald Trump’s trade policy, which applies pressure on major tech firms to relocate their production to the United States. In particular, Trump threatened to impose a 25% tariff on iPhones if Apple did not move its manufacturing from Asia to North America.

These kinds of threats have had real consequences: in the second quarter of 2025 alone, tariffs cost Apple $800 million. According to analysts, a stricter tariff policy could erode the company’s profit margins and raise prices for consumers.

Has Apple previously invested in the United States?

Yes. In February, Apple announced a prior investment plan of $500 billion in the United States over the next four years. This package includes an AI server plant in Texas, the creation of 20,000 research and development jobs, and the Apple Manufacturing Academy in Michigan, a training initiative for U.S.-based suppliers.

With the new commitment announced this Wednesday, Apple’s total cumulative investment in the United States will rise to $600 billion, consolidating the company as one of the leading contributors to the country’s reindustrialization.

Where are iPhones currently manufactured?

Currently, iPhones are primarily produced in China and India, while other products like Macs and Apple Watches are assembled in Vietnam. This diversification emerged as a response to trade conflicts with China and the need to reduce global logistical risks.

However, the Asian manufacturing model remains vulnerable to new tariffs and unilateral decisions from Washington, making the idea of greater manufacturing autonomy within the United States increasingly appealing.

What impact would an iPhone factory in the United States have?

While full details have yet to be revealed, this Wednesday’s event could mark the beginning of a domestic plant for the production of key iPhone components, if not the full final assembly. The move could generate thousands of advanced manufacturing jobs and strengthen Apple’s strategy to get closer to Washington to avoid future sanctions.

In an interview with Reuters, the president of Laffer Tengler Investments, Nancy Tengler, whose firm holds Apple shares, described the move as a smart solution: “The announcement would be a savvy solution to the president’s demand that Apple manufacture all iPhones in the U.S.”

How did the markets react to the announcement?

Following the news, Apple shares (NASDAQ:AAPL) rose by nearly 4% in early Wednesday trading, driven by investor enthusiasm over a potential reduction in tariff risk and improved relations with the U.S. government.

Analysts interpret this move as a “relief rally,” especially after months in which Apple and other tech firms have been at the center of debates around offshore production, dependence on Asia, and national security.

Will there be a “Made in USA” iPhone?

Although Apple has not yet confirmed full iPhone production on U.S. soil, the tone of the announcement suggests that at least certain critical components of the device will be manufactured in the United States as part of this multi-billion-dollar investment.

With information from Reuters

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