U.S. President Donald Trump has publicly pressed Apple CEO Tim Cook to halt the company’s expanding manufacturing operations in India, emphasizing a push for domestic production to bolster American jobs.
Speaking at a business event in Doha, Qatar, Trump revealed his concerns, stating, “I had a little problem with Tim Cook yesterday. I said to him, ‘Tim, you’re my friend. I treated you very well.
You’re coming up with $500 billion, but now I hear you’re building all over India. I don’t want you to build in India.
Trump’s remarks reflect his broader “Make America Great Again” agenda, which prioritizes bringing manufacturing back to the U.S. to create jobs and reduce reliance on foreign production, particularly as India emerges as a key hub for Apple’s global supply chain.
Apple’s Growing Footprint in India
Apple has significantly expanded its manufacturing in India, producing iPhones worth $22 billion (Rs 1.83 lakh crore) between April 2024 and March 2025, a 60% increase from the previous year, according to industry reports.
Approximately 15% of Apple’s global iPhone output now originates in India, with 98% of March 2025 exports, over 3 million units, destined for the U.S. Key partners like Foxconn, Pegatron, and Tata Electronics have driven this growth, with Foxconn alone exporting $1.31 billion worth of iPhones in March, largely via airlifts from Chennai to bypass Trump’s looming tariffs.
Foxconn’s $1.5 billion investment in its India unit, alongside a new $435 million semiconductor plant with HCL Group, underscores India’s role in Apple’s strategy to diversify from China, where 80% of its iPhones are still assembled.
Apple also began producing AirPods in Telangana and high-end iPhone 16 Pro models in India in 2024, aligning with India’s “Make in India” initiative.
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Trump’s Tariff Strategy and Economic Goals
Trump’s push to bring Apple’s manufacturing to the U.S. stems from his campaign promise to revitalize American industry. In April 2025, the U.S. imposed a 26% reciprocal tariff on Indian goods, temporarily paused until July, while China faces a 125% tariff rate.
Trump’s comments highlight India’s high tariffs, often exceeding 100% on agricultural imports and 30% on manufactured goods, which he argues make it difficult for U.S. companies to compete in India’s market.
He claimed that India offered a "no-tariff deal" for U.S. goods; however, Indian officials have denied this claim, and trade talks are ongoing, with India’s Commerce Minister Piyush Goyal scheduled to visit the U.S. from May 17-20.
Trump referenced Apple’s $500 billion U.S. investment pledge, announced in February 2025, which includes a Texas facility for AI servers opening in 2026 and 20,000 new jobs.
However, analysts like Dan Ives of Wedbush Securities argue that shifting iPhone production to the U.S. is impractical, estimating a 25% price hike to $1,500-$3,500 per iPhone due to higher labor costs and infrastructure challenges.
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India’s Strategic Importance to Apple
India’s appeal for Apple lies in its skilled workforce, lower labor costs (5-8% higher than China but far below the U.S.), and government incentives, including a $3 billion electronics manufacturing scheme.
Apple’s suppliers, including Foxconn and Tata, have created 200,000 jobs in India, with Foxconn’s Chennai plant producing 20 million iPhones annually, including iPhone 13, 14, 15, 16, and 16e models.
In March 2025, Apple airlifted 600 tons of iPhones to the U.S. using six cargo jets to avoid tariffs, with customs clearance in Chennai reduced from 30 to 6 hours.
Despite Trump’s pressure, Apple executives have reassured Indian officials that their investment plans remain intact, aiming to produce 25-30% of global iPhones in India by 2026.
This shift also reduces risks associated with U.S.-China trade tensions; however, Chinese authorities have reportedly delayed equipment shipments to India, which complicates the transition.
Did You Know?
Apple’s India operations, including Foxconn’s Chennai plant, now run on Sundays to meet demand, a rare shift from typical schedules, producing 20 million iPhones annually.
Economic and Consumer Implications
Moving production to the U.S. could significantly impact Apple’s pricing and profitability. Bank of America analysts estimate a 25% increase in iPhone costs due to U.S. labor expenses and new factory investments, potentially raising consumer prices and squeezing Apple’s margins.
In contrast, India’s cost advantages and growing infrastructure make it a critical hub, with exports to the U.S. rising 219% in March 2025, per S&P Global.
This situation reflects mixed sentiments: some individuals praise Apple’s India strategy as a smart move to avoid China tariffs, while others argue that it undermines U.S. jobs and contradicts Trump’s call for domestic manufacturing.
However, experts note that fully relocating iPhone production from Asia to the U.S. would take years due to complex supply chains involving over 1,000 components, 90% of which are assembled in China.
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Geopolitical and Trade Dynamics
Trump’s comments come amid strained U.S.-India trade relations, with India’s $45 billion trade surplus with the U.S. a point of contention. While Trump pushes for U.S.-centric manufacturing, India’s government emphasizes its role as a global tech hub, supported by Apple’s $22 billion production and job creation.
The pause on tariffs for India, excluding China, gives Indian-made iPhones a 20% cost advantage over Chinese ones, per the India Cellular and Electronics Association.
However, uncertainty over tariff permanence could deter long-term investments, as noted by Indian analysts. Trump’s broader tariff strategy aims to protect U.S. industries but risks higher consumer prices and supply chain disruptions, with companies like Apple navigating a delicate balance between global efficiency and political pressures.
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