US President
Donald Trump has made it clear to
Apple CEO
Tim Cook that he doesn’t want the tech giant to ‘
Make in India’. Trump, it appears, has frowned on Apple’s moves to step up assembly and production of Apple products in India. In the period ending March, Apple's
iPhone production in India reached $22 billion, showing a nearly 60% increase compared to the previous year.
Apple and its manufacturing partners have hastened their movement away from China, particularly after severe Covid restrictions disrupted operations at their primary facility. The implementation of tariffs by Trump and ongoing US-China diplomatic friction have intensified this diversification strategy.
Trump revealed his conversation with Tim Cook regarding the company's manufacturing expansion in India. "I had a little problem with Tim Cook yesterday," Trump mentioned during his state visit to Qatar, according to a Bloomberg report.
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Donald Trump warns Apple about ‘Make in India’, will Tim Cook-led iPhone maker listen?"He is building all over India. I don't want you building in India,” Trump reportedly said. Trump indicated that following their discussion, Apple would increase its manufacturing operations in the United States. "We are not interested in you building in India. India can take care of themselves,"Trump said he told Cook.
The American president's remarks create uncertainty for Apple's strategy to source the majority of US-bound iPhones from India by late 2024, as the company seeks to diversify beyond China due to tariff concerns and diplomatic tensions. Currently, Apple's iPhone manufacturing is concentrated in China, with no production facilities in the United States.
'India Can Take Care...': Trump Scolds Apple's Tim Cook For Making iPhones In 'High Tariff' Nation
The majority of India-manufactured iPhones are produced at Foxconn Technology Group's facility in southern India. Another significant supplier is Tata Group's electronics division, which acquired Wistron Corp.'s local operations and manages Pegatron Corp.'s Indian facilities. Both Tata and Foxconn are expanding their presence with new facilities and increased production capacity in southern India.
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Dealing with Trump’s tariffs: Apple exports 97.6% of iPhones to US from India to preempt higher tariffs on imports from ChinaTrump also highlighted India's substantial trade barriers, noting the difficulties in selling American products in the world's most populated nation. However, he acknowledged that India has proposed reducing tariffs on US goods as part of negotiations concerning import duties.