On May 15, 2025, U.S. President Donald Trump revealed a pointed conversation with Apple CEO Tim Cook, urging the tech giant to halt its expanding manufacturing operations in India and redirect efforts to the United States.
Speaking at a trade-focused event, Trump expressed frustration over Apple’s plans to produce 25% of its global iPhone supply in India within the next few years. “I told Tim, ‘I don’t want you building in India.
We treated you well, and now you’ve got to build here’,” Trump stated, referencing Apple’s $500 billion U.S. investment pledge announced in February 2025. The directive aligns with Trump’s broader trade protectionist agenda, which emphasizes domestic manufacturing to bolster the U.S. economy.
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Apple’s Global Supply Chain Strategy
Apple has been diversifying its production away from China, where roughly 90% of iPhones are currently assembled, to mitigate risks from geopolitical tensions and supply chain disruptions.
India has emerged as a key hub, with Apple’s primary assembly partner, Foxconn, recently securing approval to build a semiconductor plant there alongside HCL Group.
This move supports Apple’s goal of reducing reliance on China while tapping into India’s growing skilled workforce and favorable manufacturing incentives. However, Trump’s remarks signal potential roadblocks, as he emphasized that “India can take care of themselves” and pressed Apple to prioritize U.S.-based production.
Did You Know?
Apple’s push into India includes not just manufacturing but also retail expansion. In 2023, Apple opened its first two flagship stores in Mumbai and Delhi, signaling long-term investment in the world’s second-most populous market.
Economic and Practical Challenges
Relocating iPhone production to the U.S. will present major obstacles. Experts estimate that manufacturing iPhones domestically could inflate retail prices to $1,500-$3,500 per unit due to higher labor costs and less developed supply chain infrastructure compared to Asia.
Apple currently produces only a handful of products in the U.S., such as the Mac Pro, and recently announced a Texas facility for servers supporting its Apple Intelligence AI system.
Trump claimed that Apple would increase its U.S. production, but he did not provide any specifics. Apple has not yet responded to requests for comment, leaving analysts speculating about the company’s next steps.
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Trade Tensions with India
Trump’s comments were made in the context of U.S.-India trade relations, which have been strained by tariffs. He described India as “one of the highest tariff nations” but noted a temporary deal reducing India’s tariffs on U.S. goods until July 2025.
In April, the White House imposed a 26% “reciprocal tariff” on Indian imports, reflecting Trump’s protectionist policies. Recent data indicates India’s tariffs on electronics average 20-30%, making it a costly but strategic market for Apple. Meanwhile, India’s government has offered incentives to attract tech manufacturers, positioning the country as a viable alternative to China.
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