In a major comeback to Trump’s recent statement Apple has confirmed that its production rate and investment plans in India will remain as it is. This comes after a recent remark by US President Donald Trump urging Apple CEO Tim Cook to reduce production in India and increase it in the US. However, Apple reassured its stance to the Indian government officials. It showcased continued commitment to India as a major manufacturing base in the world.
What happened?
On Thursday, a very bold statement made during a business event in Doha, US President Donald Trump said he has asked Apple CEO Tim Cook not to expand manufacturing operations in India. He said that manufacturing should not be extended unless the output is meant solely for the Indian market. Trump expressed disapproval of Apple’s reported shift to India, which he linked to high tariffs and broader trade concerns.
What did Trump say?
“I had a little problem with Tim Cook yesterday. I said, ‘Tim you’re my friend, I’ve treated you very well, you’re coming here (in the US) with a $500 billion announcement, and now I hear you’re building all over India. I don’t want you building in India. You can build in India if you want to take care of India, because India is one of the highest tariff nations in the world’” Trump said after a meeting with business leaders between the US and Qatar.
India Emerges as a Key Manufacturing Hub for Apple
Donald Trump’s comments come at a time when Apple is rapidly expanding its production footprint all over India. The move is part of the tech giant’s broader strategy. It is to reduce reliance on China amid trade tensions and supply chain disruptions. Apple CEO Tim Cook recently stated that the majority of iPhones destined for the US market will be produced in India during the June quarter.
According to reports, the quarter ending March, Apple’s iPhone production in India surged to $22 billion. This marks nearly 60% year-on-year increase. Apple’s contract manufacturers, including Foxconn and Tata Group (which took over Wistron’s local operations), are aggressively expanding their facilities in southern India.
Trump Claims India Offered to Eliminate Tariffs on US Goods
During the same event, Trump made a surprising statement regarding ongoing US-India trade negotiations. He claimed that India had offered to remove all tariffs on US goods. “They (India) offered us a deal where basically they have agreed to charge us literally no tariffs. I said Tim, we are treating you really well, we put up with all the plants you built in China for years,” Trump said.
These remarks were made just ahead of Indian Trade Minister Piyush Goyal’s expected visit to the US from May 17 to 20 for further negotiations. Trade discussions between both nations have continued despite occasional diplomatic strains and public disagreements.
Apple’s Supply Chain Shift
Meanwhile, Trump’s public opposition to Apple’s India strategy injects uncertainty into the company’s long-term supply chain plans. Apple has been steadily increasing its manufacturing presence in India. This comes after Covid-related disruptions in China and the imposition of US tariffs under Trump’s presidency.
Trump indicated that Apple may now increase production in the US following their conversation, he offered no concrete details about any changes to Apple’s India plans. As of now, Apple has no iPhone production facilities in the US.
