Donald Trump has announced 100% tariffs on computer chips and semiconductors made outside the US.
The move threatens to increase the cost of electronics made outside the US, which covers everything from TVs and video game consoles to kitchen appliances and cars.
The announcement came as Apple chief executive Tim Cook said his company would invest an extra $100bn (£74.9bn) in US manufacturing.
Soon, all smartwatch and iPhone glass around the world will be made in Kentucky, according to Mr Cook, speaking from the Oval Office.
“This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America are also made in America,” said Mr Trump.
“Today’s announcement is one of the largest commitments in what has become among the greatest investment booms in our nation’s history.”
Mr Cook also presented the president with a one-of-a-kind trophy made by Apple in the US.
Trump’s tariffs hit India hard
Mr Trump has previously criticised Mr Cook and Apple after the company attempted to avoid his tariffs by shifting iPhone production from China to India.
The president said he had a “little problem” with Apple and said he’d told Mr Cook: “I don’t want you building in India.”
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India itself felt Mr Trump’s wrath on Wednesday, as he issued an executive order hitting the country with an additional 25% tariff for its continued purchasing of Russian oil.
Indian imports into the US will face a 50% tariff from 27 August as a result of the move, as the president seeks to increase the pressure on Russia to end the war in Ukraine.
Mr Trump told reporters at the White House he “could” also hit China with more tariffs.
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Apple’s ‘olive branch’
Apple, meanwhile, plans to hire 20,000 people in the US to support its extra manufacturing in the country, which will total $600bn (around £449bn) worth of investment over four years.
The “vast majority” of those jobs will be focused on a new end-to-end US silicon production line, research and development, software development, and artificial intelligence, according to the company.
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Apple’s investment in the US caused the company’s stock price to hike by nearly 6% in Wednesday’s midday trading.
The rise may reflect relief by investors that Mr Cook “is extending an olive branch” to Mr Trump, said Nancy Tengler, chief executive of money manager Laffer Tengler Investments, which owns Apple stock.
