Apple Shares Surge 5% — $100 Billion U.S. Investment Secures Tariff Exemption, Company Back on Track

TradingKey - Apple (AAPL) posted its largest single-day gain in over three months, rising 5.09% to $213.25 on Wednesday, August 6, after CEO Tim Cook announced a massive new U.S. investment plan — effectively securing a tariff exemption from the Trump administration.

To avoid the financial impact of new tariffs, Cook once again deployed a proven strategy: bringing manufacturing back to America in exchange for favorable trade treatment.

A $600 Billion Bet on America

At the White House, Cook announced that Apple will invest an additional $100 billion in the United States over the next four years. Combined with its $500 billion commitment announced in February, this brings Apple’s total U.S. investment to $600 billion — the largest in company history.

The plan includes:

• Creating 20,000 new U.S. jobs
• Investing $2.5 billion in Corning, its long-time glass supplier
• Building a new server manufacturing facility in Houston
• Establishing a supplier training academy in Michigan

The White House hailed the move as a major win for President Trump’s “America First” economic agenda and a sign of renewed momentum in U.S. manufacturing.

A Strategy Repeated

This is not the first time Apple has used domestic investment pledges to navigate trade policy risks.

During Trump’s first term, Apple made several high-profile U.S. investment announcements to avoid tariffs. In 2019, the company committed to assembling a new Mac Pro in Texas — even though it had already been producing earlier models there since 2013. That move helped Apple avoid tariff exposure.

Tariff Exemption Confirmed

In Trump’s latest trade actions — including raising tariffs on India to 50% and proposing 100% tariffs on foreign-made chips — Apple was notably excluded.

Trump confirmed that,

“The good news for companies like Apple is, if you’re building in the United States, or have committed to build, there will be no charge.”

In recent years, Apple has accelerated efforts to shift iPhone production from China to India, aiming to produce 60 million iPhones sold in the U.S annually in India by late 2026.

The exemption from India-related tariffs removes a major financial risk and eases margin pressure on Apple’s important product line.

Market Reaction: Confidence Returns

The announcement boosted investor sentiment. Apple’s stock rose 5.09% to $213.25, its largest single-day gain since May 12 (+6.31%), narrowing its 2025 year-to-date loss to under 15%.

According to TradingKey, the average Wall Street price target for Apple is $234.93, implying about 16% upside from current levels. Please check the hodings of institutions through the Star Investors tool.

Analyst Price Targets for Apple, Source: TradingKey

Analysts: A Smart Move

Daniel Ives, Analyst at Wedbush Securities, said:

“Today is a good step in the right direction for Apple, and it helps get on Trump's good side after what appears to be a tension-filled few months in the eyes of the Street between the White House and Apple.”

While Wall Street remains skeptical about Apple’s ability to bring large-scale iPhone manufacturing back to the U.S., Nancy Tengler, CEO of Laffer Tengler Investments, called the announcement a “savvy solution” to Trump’s aggressive trade posture.