Credited from: SCMP
During a recent state visit to Qatar, US President Donald Trump made it clear to Apple CEO Tim Cook that he does not want the company "building in India." The remarks arose from concerns over Apple's accelerating diversification of its production base amidst strained US-China relations, as Trump stated, "I had a little problem with Tim Cook yesterday," detailing their conversation about Apple's manufacturing strategies in India according to Indiatimes and South China Morning Post.
Underlining the economic dynamics, Apple reported a significant rise in iPhone assembly in India, producing approximately $22 billion worth of products in the fiscal year ending March 2025, representing a nearly 60% increase from the previous year. Trump indicated that as a consequence of their dialogue, Apple intends to enhance its production capabilities within the United States, which presently lacks any iPhone manufacturing facilities, according to Indiatimes and Business Insider.
Trump also highlighted the obstacles posed by India’s operational environment, citing its high tariffs as a barrier to American products. Despite this, he acknowledged that India had proposed reducing tariffs on US products, indicating a willingness to negotiate in ongoing trade discussions, as reported by Indiatimes and South China Morning Post.
The discussions come as Apple, traditionally reliant on Chinese manufacturing, has sought to mitigate risks associated with geopolitical tensions and rising tariffs. Analysts have expressed concerns that relocating more of Apple's supply chain to the U.S. could result in increased consumer prices for iPhones, as indicated by reports from Business Insider.