Make iPhones in US, not India—Trump threatens Apple with tariffs
What's the story
US President Donald Trump has sent a strong message to Apple CEO Tim Cook, demanding that iPhones sold in the country should be manufactured locally. In a post on Truth Social, Trump wrote, "I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else."
Tariff warning
Trump threatens Apple with a hefty tariff
Trump further stressed that if Apple doesn't follow this order, they will have to pay a tariff of at least 25% to the US. This warning comes after Trump had earlier asked Cook to stop setting up manufacturing plants in India. "I had a little problem with Tim Cook yesterday," Trump said. "He is building all over India. I don't want you building in India."
Production shift
Apple's shift to India disrupts US production plans
Trump's comments have derailed Apple's plan to source most of its iPhone supply for the US from India by the end of next year. The move was first intended to cut dependence on China amid tariff and geopolitical concerns. Currently, Apple makes most of its iPhones in China and has no smartphone production facilities in the US.
Shift to India
Apple's pivot away from China
Apple and its suppliers have been hastening their exit from China, a trend that started when strict COVID-19 lockdowns disrupted production at Apple's biggest plant. The shift was further accelerated by Trump-imposed tariffs and rising tensions between Beijing and Washington. Most iPhones produced in India are assembled at Foxconn Technology Group's southern India factory. Tata Group's electronics manufacturing division, which bought Wistron Corp.'s local business and manages Pegatron Corp.'s India operations, is also a major supplier.