Apple, which predominantly manufactures its products outside the U.S., acknowledged the potential business risks in its latest annual report, citing dependencies on China, India, Japan, South Korea, Taiwan, and Vietnam.
“Substantially all of the company’s manufacturing is performed in whole or in part by outsourcing partners,” the report stated, emphasizing the impact of geopolitical tensions on business operations.
White House Reacts
The Trump administration has framed Apple’s announcement as a validation of its economic policies. The White House directed media inquiries to Trump’s social platform, Truth Social, where he credited his leadership for Apple’s decision.
“Apple has just announced a record $500 billion investment in the United States of America,” Trump posted. “The reason? Faith in what we are doing. Without it, they wouldn’t be investing ten cents.”
The White House did not respond to questions on whether Apple’s investment would influence its stance on semiconductor tariffs. Trump, however, reiterated plans to introduce “reciprocal” tariffs against nations perceived as disadvantaging American trade.
A Risky Global Balancing Act
Apple generates 57% of its revenue outside the U.S., making it vulnerable to retaliatory tariffs from China and the European Union. The company earned $391 billion in sales last year, with 17% from China and 26% from Europe, as per its latest financial disclosures.
