In a surprising development that has caught the attention of global business and trade observers, former US President Donald Trump reportedly told Apple CEO Tim Cook that he does not want the tech giant to expand its manufacturing footprint in India. This statement came during a business event in Doha, Qatar, escalating ongoing tensions in the US-India trade relationship.
Trump’s Message to Apple: Focus on US Manufacturing, Not India
Trump expressed his displeasure directly to Tim Cook, saying, “We are not interested in you building in India. India can take care of themselves.” He emphasized that India is one of the highest-tariff nations globally, making it difficult for US-made products to compete in the Indian market. Trump also reminded Cook that the US had been very accommodating of Apple’s manufacturing plants in China for years and urged Apple to increase production within the United States instead.
Context: Apple’s Shift Towards India Amid Tariff Pressures
Apple has been actively ramping up its manufacturing in India, aiming to reduce its heavy dependence on China, where around 90% of its iPhones are currently made. The company plans for India to account for about 15-25% of total iPhone production by the end of 2025 or 2026. This move is partly driven by rising tariffs and trade tensions between the US and China, as well as India’s growing role as a global manufacturing hub under Prime Minister Narendra Modi’s “Make in India” initiative.
Despite higher manufacturing costs in India-estimated to be 5-10% more expensive than China-Apple sees strategic value in diversifying its production base. Major suppliers like Foxconn and Tata are expanding their factories in India to support this transition. Apple’s production in India has already reached record export levels, shipping iPhones worth billions to the US and other markets.
Trade Tensions and Tariff Wars: The Bigger Picture
Trump’s remarks come at a time when US-India trade relations are strained. The US recently imposed higher tariffs on Indian steel and aluminum, prompting India to threaten retaliatory tariffs. These tariff battles complicate Apple’s manufacturing decisions, as tariff policies directly impact the cost competitiveness of products made in different countries.
While Trump criticized India’s tariff regime, it is notable that India currently imposes zero tariffs on US smartphone imports, including iPhones, which gives India an edge over China in this sector. The US, meanwhile, has levied steep reciprocal tariffs on Chinese goods, further incentivizing companies like Apple to look beyond China for manufacturing.
What This Means for Indian Manufacturing and Apple’s Future
Trump’s public admonition to Apple highlights the complex geopolitical and economic dynamics shaping global supply chains. While the US pushes for reshoring manufacturing, India is positioning itself as a key alternative manufacturing base for tech giants.
For India, the message is clear: despite tariff challenges, the country is capable of managing its own industrial growth and attracting significant foreign investment in high-tech manufacturing. Apple’s continued investment in India signals confidence in the country’s long-term potential, even as it navigates trade and tariff hurdles.
Conclusion: A Crossroads for Apple’s Global Strategy
Apple stands at a crossroads between US political pressures and the strategic benefits of manufacturing diversification. While Trump’s call to boost US production is politically motivated, the economic realities of tariffs, costs, and supply chain resilience are pushing Apple to deepen its manufacturing presence in India.
As trade talks between the US and India continue behind the scenes, Apple’s decisions will likely balance these competing pressures-leveraging India’s manufacturing potential while responding to US demands to support domestic production.
This episode underscores the evolving nature of global trade and manufacturing in a multipolar world, where companies must juggle national interests, tariffs, and operational efficiencies to stay competitive.