Trump Claims Tim Cook Promised to Close Mexican Factory and Invest in U.S. Amid Trade War

Apple's Quiet Response to Trump's Remarks on New Manufacturing Plans / Reuters

U.S. President Donald Trump announced that Tim Cook, CEO of Apple, committed to closing the company's manufacturing plants in Mexico and shifting production to the United States. This move is part of a broader strategy to expand domestic manufacturing in response to the Trump administration’s tariffs on Mexico. However, despite these assertions, Trump did not reveal specific details regarding the location or scale of Apple’s new U.S. facilities.

Trump made this statement during a gathering of governors at the White House, sharing that Cook visited him in the Oval Office the previous day. According to Trump, Cook informed him that Apple would shut down two of its Mexican factories and would instead increase its manufacturing in the U.S., promising an investment worth hundreds of millions of dollars. Trump emphasized that Apple does not want to be involved in paying tariffs. The president further mentioned that Apple’s public announcement of its investment plans would be forthcoming, although specific financial details and facility locations were not disclosed.

News outlets such as Bloomberg and Reuters reported on these remarks, but they noted that it remains unclear which specific manufacturing sites Trump was referring to, as Apple’s primary suppliers, such as Foxconn, operate large facilities in Mexico, and Apple has previously indicated its limited reliance on Mexican production. Apple’s suppliers, including companies like Molex, Yageo, and Skyworks Solutions, produce some components in Mexico, but the majority of Apple’s manufacturing occurs in Asia.

Trump’s comments align with his ongoing efforts to claim success in his trade policies, particularly his tariff strategy, which aims to incentivize companies to bring production back to the U.S. He argued that many businesses are planning to increase their investments in the U.S., particularly in sectors such as chip production and automobile manufacturing, to avoid tariffs. However, he did not disclose any company names or further details on this shift.

The president’s tariff policies have sparked global reactions, especially in the context of the U.S.-China trade war. Under his administration, Trump had proposed imposing significant tariffs on Mexican and Canadian imports, citing concerns such as illegal immigration and trade imbalances. Additionally, he threatened a 10% tariff on Chinese goods, although the situation remains fluid, with some tariffs delayed due to diplomatic negotiations.

The impact of these policies on Apple is significant, as the company relies heavily on Chinese manufacturing, especially for products like iPhones. Apple's exposure to the trade war risks, including tariff increases on Chinese products, has put the company under pressure in both the U.S. and China. The Chinese government, in retaliation, has even explored scrutinizing Apple's App Store policies. Throughout these challenges, Tim Cook has previously negotiated tariff exemptions with the Trump administration, helping Apple navigate the tumultuous trade landscape.

Apple's next steps in response to Trump’s comments remain uncertain. The company has not yet commented on the potential relocation of production or its plans to comply with the administration's requests. The shift in Apple’s strategy could have significant implications for the tech industry, especially as companies increasingly face the economic and political pressures created by evolving global trade dynamics.

This move reflects the ongoing tension between trade policies and global manufacturing strategies, with companies like Apple caught in the crossfire of international trade disputes.