President Donald Trump recently expressed to Apple CEO Tim Cook his desire for the tech giant to halt plans for production expansion in India. Highlighting a $500 billion investment commitment by Apple to the U.S., Trump urged Cook to prioritize American manufacturing instead of diversifying production to India, where Apple intends to manufacture 25% of global iPhones in the coming years. Trump remarked, “We’ve treated you really good… now you’ve got to build us. We’re not interested in you building in India.”
During their conversation, Trump emphasized that despite Apple’s longstanding presence in China, he wants the company to shift its focus back to the U.S. He alluded to ongoing discussions regarding trade relations, noting that India is one of the countries with the highest tariffs and mentioning a recent deal offering the U.S. reduced tariffs on their goods. As part of the White House’s trade protectionism policies, Trump has imposed a reciprocal tariff of 26% on Indian imports, although this was temporarily lowered until July.
Apple has been investing in diversifying its supply chain, notably in India and Vietnam, reflecting a broader trend away from reliance on Chinese manufacturing. Nonetheless, experts argue that relocating iPhone production to the U.S. is impractical due to significantly higher costs, which could drive retail prices between $1,500 and $3,500 per unit. Currently, the only product Apple manufactures in the U.S. in substantial quantities is the Mac Pro. The company is also establishing a facility in Texas for its artificial intelligence servers. CNBC has sought comments from Apple regarding Trump’s statements.
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