US President Donald Trump on Thursday said he has asked Apple CEO Tim Cook to stop producing iPhones in India, and make them in the US instead.
Apple has no smartphone production in the US — most of its iPhones are made in China while facilities in India produce around 40 million units per year (about 15% of Apple’s annual output). Cook had previously stated that Apple will source the majority of iPhones sold in the US from India in the June quarter while China will produce the vast majority of the devices for other markets.
Speaking on Thursday at an event with business bigwigs in Doha, Trump also said India had “offered us a deal where basically they are willing to literally charge us no tariff” on US goods.
Trump didn’t provide further details of the apparent offer, nor was there any comment from Indian officials. Trump’s comments came days after India threatened to impose retaliatory tariffs in response to higher US duties on steel and aluminium.
‘Trump’s tariff remarks may be a negotiating tactic by White House’
Some analysts in New Delhi suggested that President Trump’s remarks could indicate either that India is close to finalising a deal, or that the comments are a negotiating tactic by the White House.
While PM Modi and Trump share a strong personal rapport, there is growing frustration in New Delhi in recent days over the US president’s insistence he used trade as a bargaining tool to secure a ceasefire between India and Pakistan. Indian officials have disputed that.
Talking about his conversation with Tim Cook, Trump said, “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 in with $500 billion (investment). But now I hear you're building all over India. I don't want you building in India.”
The company had earlier this year pledged to spend $500 billion in the US over the next four years.
As a result of discussions with Cook, Trump said Apple will be “upping their production in the United States”.
Cheaper skilled labour and availability of precision-engineered product supply chains have driven Apple to China and India for manufacturing iPhones. American labour and manufacturing in comparison is expensive.
Trump suggested that Apple could make its products in India for the Indian market. But made-in-India iPhones being sold in the US has to stop. “You can build in India if you want, to take care of India,” Trump said he told Cook.
According to an analysis by S&P Global, iPhone sales in the US were 75.9 million units in 2024, with exports in March from India at 3.1 million units.
The Apple ecosystem in India is one the biggest job creators in the country. It is estimated to have employed around two lakh people across various vendors in the country.
Since returning to the White House, Trump has pledged to impose “reciprocal” tariffs of 26% on India. Those tariffs are currently on hold until early July.
India has made several moves to satisfy Trump’s grievances this year, including overhauling its tariff regime to reduce import duties on prominent American goods like bourbon whiskey and high-end motorcycles made by Harley-Davidson Inc. As part of its trade negotiations, New Delhi has also proposed zero tariffs on some goods like auto components and pharmaceuticals on a reciprocal basis up to a certain quantity of imports.
Apple has no smartphone production in the US — most of its iPhones are made in China while facilities in India produce around 40 million units per year (about 15% of Apple’s annual output). Cook had previously stated that Apple will source the majority of iPhones sold in the US from India in the June quarter while China will produce the vast majority of the devices for other markets.
Speaking on Thursday at an event with business bigwigs in Doha, Trump also said India had “offered us a deal where basically they are willing to literally charge us no tariff” on US goods.
Trump didn’t provide further details of the apparent offer, nor was there any comment from Indian officials. Trump’s comments came days after India threatened to impose retaliatory tariffs in response to higher US duties on steel and aluminium.
‘Trump’s tariff remarks may be a negotiating tactic by White House’
Some analysts in New Delhi suggested that President Trump’s remarks could indicate either that India is close to finalising a deal, or that the comments are a negotiating tactic by the White House.
While PM Modi and Trump share a strong personal rapport, there is growing frustration in New Delhi in recent days over the US president’s insistence he used trade as a bargaining tool to secure a ceasefire between India and Pakistan. Indian officials have disputed that.
Talking about his conversation with Tim Cook, Trump said, “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 in with $500 billion (investment). But now I hear you're building all over India. I don't want you building in India.”
The company had earlier this year pledged to spend $500 billion in the US over the next four years.
As a result of discussions with Cook, Trump said Apple will be “upping their production in the United States”.
Cheaper skilled labour and availability of precision-engineered product supply chains have driven Apple to China and India for manufacturing iPhones. American labour and manufacturing in comparison is expensive.
Trump suggested that Apple could make its products in India for the Indian market. But made-in-India iPhones being sold in the US has to stop. “You can build in India if you want, to take care of India,” Trump said he told Cook.
According to an analysis by S&P Global, iPhone sales in the US were 75.9 million units in 2024, with exports in March from India at 3.1 million units.
The Apple ecosystem in India is one the biggest job creators in the country. It is estimated to have employed around two lakh people across various vendors in the country.
Since returning to the White House, Trump has pledged to impose “reciprocal” tariffs of 26% on India. Those tariffs are currently on hold until early July.
India has made several moves to satisfy Trump’s grievances this year, including overhauling its tariff regime to reduce import duties on prominent American goods like bourbon whiskey and high-end motorcycles made by Harley-Davidson Inc. As part of its trade negotiations, New Delhi has also proposed zero tariffs on some goods like auto components and pharmaceuticals on a reciprocal basis up to a certain quantity of imports.
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