Apple's unexpected response to Trump tariffs prove it's not immune to political pressure

(Image credit: Apple)

The upcoming US Silicon Tariffs are expected to cause price increases on tech hardware, with price hikes of up to 40%.

We've seen a few responses now from hardware manufacturers like Acer and Lenovo. Acer is raising prices by 10% and moving manufacturing outside of China to assist in insulation from the Chinese manufacturing and silicon tariffs. Lenovo believes its multi-national manufacturing footprint makes the company flexible enough to have some insulation from the tariffs.

Apple has a different plan for how to handle the tariffs, which comes as a surprise. Apple was immune to many of the silicon hardware tariffs that impacted the tech industry under the first Trump administration due to an investment in moving operations to the US, but that promised Austin, TX campus is still under construction.

More servers, more staff, and a $500 Billion investment

3D render of the Apple M4 Pro processor with wafer glowing above the chip. — (Image credit: Rael Hornby)

Apple is launching a massive server factory in Houston, TX, and hiring 20,000 new US employees over the next four years.

The Houston server factory will create servers to support Apple Intelligence, as the AI system does include various Private Cloud Compute AI features.

Apple's manufacturing investment announcement reads, "As part of its new U.S. investments, Apple will work with manufacturing partners to begin production of servers in Houston later this year. A 250,000-square-foot server manufacturing facility, slated to open in 2026, will create thousands of jobs."

Apple's server manufacturing arm is currently sourced abroad.

Apple is also doubling its U.S. Advanced Manufacturing Fund, which was created in 2017. Apple originally invested $5 Billion in the Manufacturing Fund, making a total $10 Billion in funds with today's announcement.

"The fund’s expansion includes a multibillion-dollar commitment from Apple to produce advanced silicon in TSMC’s Fab 21 facility in Arizona."

Apple is the largest customer for TSMC's Fab 21 facility where "mass production of Apple chips began last month."

Apple is also growing US-based R&D and creating a Manufacturing Academy in Detroit, MI.

What you need to know about the tech tariffs

The 25% Silicon tariffs are not yet confirmed. However, a recent report from Reuters indicates the chip tariffs would start at "25% or higher" and increase over the course of the year.

This 25% tariff, combined with a 10% tariff on goods manufactured in China, is the driving force behind the 40% price increase predictions for consumer tech.

If you're considering updating any of your tech devices, it may be worth it to upgrade now rather than wait to see how the tariffs shake out. However, nothing is currently set in stone.

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A former lab gremlin for Tom's Guide, Laptop Mag, Tom's Hardware, and TechRadar; Madeline has escaped the labs to join Laptop Mag as a Staff Writer. With over a decade of experience writing about tech and gaming, she may actually know a thing or two. Sometimes. When she isn't writing about the latest laptops and AI software, Madeline likes to throw herself into the ocean as a PADI scuba diving instructor and underwater photography enthusiast.