President Donald Trump told a gathering of governors that Apple Inc. CEO Tim Cook promised him that the company’s manufacturing would shift from Mexico to the US during a meeting at the White House this week.
Cook “stopped two plants in Mexico” and will build products in the US instead, Trump said on Friday. He spoke the day after he and the Apple leader — who Trump said also promised hundreds of millions of dollars in US investment — met in Washington.
“They don’t want to be in the tariffs,” Trump said.
It’s not clear what manufacturing facilities Trump was referencing, though Foxconn Technology Group — which manufactures the company’s iPhones — already has a large manufacturing presence in Mexico and has announced plans to expand its footprint there.
A representative for Apple didn’t immediately respond to a request for comment.
Cook is among the tech industry leaders who have sought to nurture a close relationship with the president since his reelection, attending his inauguration last month and traveling to his Mar-a-Lago estate in Florida during the presidential transition.
Cook’s company risks being caught in the middle of an escalating trade fight between the US and China, with Trump’s 10% tariff on Chinese-made goods posing a challenge for Apple as it seeks to address sluggish iPhone sales. China is weighing a probe into Apple’s policies and the fees it charges app developers. China is Apple’s biggest manufacturing hub, while the US is its largest market.
During Trump’s first term, Cook was able to leverage his relationship with the president to win tariff carve-outs for its signature iPhone. But the president has suggested that the company’s devices might not be so lucky this time as he seeks to impose sweeping new tariffs on imported goods, telling reporters that he’s looking to avoid exemptions.
Taiwan’s government has pledged to help companies like Foxconn, also known as Hon Hai Precision Industry Co., shift production lines in the aftermath of Trump’s executive orders imposing across-the-board 25% tariffs on Canada and Mexico. Trump has paused implementation of those tariffs for now, but said they could still go back into effect if he doesn’t see sufficient progress on immigration and anti-narcotic priorities.
Shortly following the election, Cook posted to social media that Apple looked “forward to engaging with you and your administration to help make sure the United States continues to lead with and be fueled by ingenuity, innovation, and creativity.”
But Trump has also sparred with the company over its privacy policies, saying it should do more to help federal law enforcement access encrypted phones. Apple has resisted requests from law enforcement to build a backdoor into its phone operating system that would allow authorities to access data without a user’s password, saying that could leave phones vulnerable to hackers.
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