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'No more outsourcing to India'—Trump's AI plan comes with warnings
Trump criticizes tech outsourcing to India amid AI policy launch

'No more outsourcing to India'—Trump's AI plan comes with warnings

Jul 24, 2025
04:37 pm

What's the story

US President Donald Trump has criticized American tech companies for outsourcing jobs to India and setting up factories in China. He made the remarks at a high-profile AI summit in Washington, where he also unveiled an 'AI Action Plan' to reassert US dominance in the global AI race. "Under President Trump, those days are over," he said, referring to his administration's stance on tech outsourcing.

Accusations

Silicon Valley exemplifies 'radical globalism': Trump

Trump accused Silicon Valley of "radical globalism," alleging that major US tech firms are taking advantage of American freedoms while outsourcing jobs abroad. He said, "Many of our largest tech companies have reaped the blessings of American freedom while building their factories in China, hiring workers in India, and slashing profits in Ireland." The president stressed the need for US technology companies to be fully committed to America.

Tariff warning

Trump warns Apple about heavy tariffs

This isn't the first time Trump has criticized India over tech outsourcing. In May, he warned Apple of heavy tariffs if it continued making iPhones outside the US. "I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," Trump had said on his social media platform Truth Social.

Strategic plan

AI Action Plan compares current AI race to space race

The AI Action Plan unveiled by the Trump administration focuses on three main pillars: accelerating innovation, building AI infrastructure, and ensuring American leadership in international AI diplomacy and security. The strategy compares the current AI race to the space race and promises to achieve global technological dominance. "This is one of the most important technological revolutions in the history of the world," Trump said about the AI race.

Regulatory framework

Plan calls for a single federal standard to regulate industry

The AI Action Plan also calls for a single federal standard to regulate the industry. "We have to have a single federal standard, not 50 different states regulating this industry of the future," Trump said. He emphasized that having one state holding up progress or setting overly high standards would be counterproductive. "You have to have a federal rule and regulation," he added, advocating for uniformity in AI regulation across states.