KEY POINTS
- President Donald Trump urged Apple CEO Tim Cook to scale back iPhone production in India during a business summit in Doha on May 15, 2025.
- Trump criticized India’s high tariffs, calling it one of the toughest markets for U.S. products.
- Apple produced $22 billion worth of iPhones in India in FY 2024–25, up 60% year-over-year.
- Indian officials expressed concern that Trump’s stance could hurt local job creation and economic goals.
- Apple has not changed its India manufacturing plans, citing cost benefits and supply chain strategy.
Trump’s Remarks in Doha Echo “America First” Strategy
DOHA, Qatar — President Donald Trump on Wednesday publicly urged Apple CEO Tim Cook to stop expanding the company’s iPhone manufacturing operations in India and instead invest further in U.S. facilities. Speaking at a high-profile business summit in Doha, Trump said he confronted Cook about Apple’s growing reliance on Indian production despite what he described as unfair trade barriers.
“I had a little problem with Tim Cook yesterday,” Trump told the audience, referencing a private exchange. “I said to him, ‘You’re coming here with a $500 billion announcement, and now I hear you’re building all over India. Don’t do that unless you want to take care of India — they’re one of the highest tariff nations in the world.’”
According to The Guardian, the comments align with Trump’s ongoing “America First” manufacturing agenda, which has intensified under his current second term. His administration has maintained aggressive tariffs on Indian and Chinese goods, citing trade imbalances and national interest.
India Now Core to Apple’s Global Supply Chain
Apple has not formally responded to Trump’s latest comments, but according to Times of India, the tech giant reassured Indian officials that it remains committed to long-term production in India.
Apple’s move into India began as a response to U.S.-China trade tensions and pandemic-related supply disruptions. The company’s production output in India hit $22 billion for the fiscal year ending March 2025 — a 60% increase over the previous year — largely fueled by operations in Tamil Nadu and Karnataka through partners like Foxconn and Tata Electronics.
A government official familiar with Apple’s India strategy told CNBC-TV18 that the company currently employs over 150,000 people across its Indian production hubs.
India Pushes Back on Trump’s Claims
India’s Commerce Minister Piyush Goyal disputed Trump’s assertion that a “no-tariff deal” had been extended to the U.S. He reiterated that India remains open to international investment while maintaining balanced trade policies.
In a comment to The Times of India, a senior official at the Ministry of Electronics and IT said, “Apple’s investments have helped generate large-scale employment, particularly for women in southern states. A slowdown in their operations would hurt our economic objectives.”
India aims to capture 25% of the global electronics manufacturing market by 2030. Trump’s remarks have raised concerns that U.S. political pressure could slow momentum, despite India’s favorable incentive programs like the Production-Linked Incentive (PLI) scheme.
Balancing Costs, Politics, and Growth
Relocating Apple’s Indian manufacturing back to the U.S. would be a costly shift. Experts note that American labor and infrastructure costs are significantly higher, and no U.S. facility currently matches India’s capacity for assembling tens of millions of smartphones annually.
Despite this, Apple pledged a $500 billion U.S. investment in February 2025, focusing largely on chip production, AI research, and new office campuses — but not yet shifting iPhone production at scale.
Apple’s decision on where to manufacture will likely depend on balancing Trump’s protectionist stance with its global cost-efficiency priorities and shareholder interests.
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