Apple announced plans to create 20,000 new US jobs and invest $500 billion domestically over four years, including AI server production in Texas. The announcement follows a meeting between CEO Tim Cook and President Trump amid ongoing concerns about Chinese tariffs.
Multiple Executive Orders in early 2025 introduced significant tariff changes, including a 25% tariff on Mexico/Canada imports (currently paused) and an additional 10% tariff on China/Hong Kong imports. Steel and aluminum tariffs were amended to 25% for all imports, while various products face increased tariffs ranging from 25% to 100% through 2026.
The Trump administration's proposal for 'reciprocal' tariffs based on perceived unfair trade practices, including the EU's VAT system, reflects a misunderstanding of how value-added taxes work. The real competitiveness issues stem from flaws in the US federal and state tax systems, particularly the problematic design of state sales taxes that create tax pyramiding.