US President Donald Trump and Apple Inc. (AAPL) are set to announce a new $100B US manufacturing deal that will rescue Apple from tariff threats. The announcement at the White House on Wednesday includes a new manufacturing program designed to bring more of Apple’s supply chain to the US, to assemble additional critical components domestically. Apple CEO Tim Cook is also expected to be present alongside Trump at the announcement.
“President Trump’s America First economic agenda has secured trillions of dollars in investments that support American jobs and bolster American businesses,” White House spokesperson Taylor Rogers said in a statement. “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.” Apple has yet to comment on the reported $100B deal with the White House.
New Manufacturing Deal To Rescue Apple and AAPL Stock From Tariff Threats?
Apple has been one of the hardest-hit US companies by tariff concerns since the sweeping tariff announcement last April. Year-to-date, AAPL stock is down 14.4%. However, the news today is sending AAPL over 5% higher, and could be enough to bring the stock back out of the red.
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The $100B US deal also comes while Apple (AAPL) is awaiting a decision in its case against Alphabet (GOOGL), where another $10B could be on the line. Stock analysts have remained bullish on AAPL this year despite the dips, and now the stock may finally be set to rebound and meet those lofty expectations. Bank of America analysts maintain a Buy rating on the stock with a $240.00 price target. Furthermore, BofA remains optimistic about its long-term growth, driven by AI investments and solid financials.
Apple’s earnings of $1.57 per share exceeded analyst estimates of $1.43, and revenue hit $94.04 billion versus the expected $89.30 billion. Additionally, Apple’s stock price gained momentum from iPhone sales growth of 13.5% to $44.58 billion, which beat forecasts by over $4 billion, even with ongoing tariff concerns. With these concerns potentially being put to rest following its deal with the White House, Apple may be an investor favorite choice among the Magnificent-7 in the short term.