Apple (NASDAQ: AAPL) just pulled a move straight out of the “keep your friends close and your politicians closer” playbook.
The tech giant announced an extra $100 billion U.S. investment, on top of the $500 billion it already pledged back in February.
The news came out right after President Trump doubled down on wanting iPhones made in America.
Now, one thing to consider here is that making iPhones in the U.S. sounds patriotic, but it’s wildly expensive. Analysts say an American-made iPhone could cost around $3,500 (yep, triple the price of today’s $1,199 iPhone 16 Pro Max). That would destroy Apple’s competitive edge faster than you can say “Android.”
So instead, Apple’s big investment is less about shifting production and more about keeping Trump happy enough to keep the tariff threats away.
And it’s working, Trump’s hinted that companies investing in the U.S., like Apple, could dodge his proposed 100% tariff on semiconductor imports.
India Gets Tariffs, Apple Gets a Pass
The drama doesn’t stop there. Trump just slapped 50% tariffs on goods from India as payback for their oil trade with Russia. For Apple, this could have been a nightmare, since they’ve been moving iPhone production from China to India to sidestep earlier tariffs.
But here’s the twist. Smartphones are exempt from the Indian tariffs. This means Apple’s India strategy stays intact, and some are guessing their fresh $100B U.S. investment didn’t hurt their chances of getting that exemption.
The Stock Pops, But AI’s Still the Big Question
From Aug. 4 to Aug. 8, Apple shares jumped over 13%, logging one of their best weeks in 2025. Investors love the idea of Apple avoiding Trump’s wrath and his tariffs.
While Apple is winning on the policy and production side, it’s still facing heat for falling behind in artificial intelligence. Wall Street wants proof that the company can deliver real AI innovation, not just play defense on tariffs.
Until then, the big question is whether these political wins can keep the stock flying, or if AI gaps will weigh it back down.
Apple’s $100B investment is a smart short-term play to dodge costly tariffs and keep its production strategy intact. However, in the long term, the company needs to prove it can lead in AI if it wants investors to keep the love coming.
