May 16, 2025, 12:00 AM
May 15, 2025, 12:00 AM

Trump insists Apple should not manufacture in India

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Highlights
  • Donald Trump urged Apple CEO Tim Cook to reconsider building products in India, stating this preference during a recent conversation.
  • Apple's objective is to produce around 25% of global iPhones in India to reduce reliance on Chinese manufacturing.
  • The implications of shifting production away from India to the U.S. could lead to significant increases in retail prices and may reduce consumer demand.
Story

On May 15, 2025, in Qatar, U.S. President Donald Trump expressed his disapproval of Apple's plans to increase production in India during a conversation with CEO Tim Cook. Trump stated that he would prefer Apple to manufacture more of its products domestically, asserting that he had treated Apple well and referenced a $500 billion investment that Apple had committed to in the U.S. Apple has been ramping up production in India with expectations to produce approximately 25% of global iPhones in the coming years, primarily to decrease its dependence on China, where most of its smartphones are currently assembled. Trump's remarks came amidst broader trade discussions, where he applied pressure on manufacturing locations and tariffs relating to imports, specifically targeting India, which he noted has some of the highest tariffs in the world. While Apple has begun moving production to India, including the construction of a semiconductor plant by its supplier Foxconn with a $433 million investment, experts believe that significant shifts in Apple's manufacturing strategy to the U.S. would be unlikely due to dramatically increased production costs and the complexities of establishing a new supply chain. These shifts are further complicated by persistent trade tensions between the United States and China, as well as ongoing tariff strategies initiated during Trump's presidency that have primarily affected imports from China, not India. Analysts have pointed out that while it is theoretically possible for Apple to move production to the U.S., such changes could inflate the retail prices of Apple products significantly, potentially alienating consumers seeking more affordable options.

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