On May 14, 2025, U.S. President Donald Trump urged Apple CEO Tim Cook to halt iPhone production expansion in India, emphasizing domestic manufacturing in the U.S. during a Qatar business event. Trump’s remarks, citing India’s high tariffs and a $500 billion U.S. investment pledge by Apple, challenge the company’s plan to source most U.S.-bound iPhones from India by 2026. The piece examines the potential impact on India’s Make in India initiative, which has positioned the country as a global manufacturing hub, and the broader implications for Apple’s strategy.
In This Article :
Trump’s Directive and Apple’s Response
Trump expressed frustration with Apple’s growing Indian operations, stating, “I had a little problem with Tim Cook yesterday. I don’t want you building in India. We’ve treated you really good, we put up with all the plants you built in China for years.” He claimed Apple would “up” U.S. production, though no specifics were provided. Apple, however, reaffirmed its commitment to India, with executives assuring Indian officials that investment plans remain intact, per Times of India. India produced $22 billion worth of iPhones in the fiscal year ending March 2025, a 60% rise, with Foxconn and Tata Group leading operations.
Apple’s shift to India, producing 15–20% of global iPhones, aims to diversify from China amid U.S.-China trade tensions and Trump’s tariffs, which hit 145% on Chinese goods. Cook noted in April 2025 that most U.S.-sold iPhones would originate in India by June, a hedge against tariffs and China’s COVID-era disruptions. Trump’s push, coupled with a U.S.-China trade deal reducing tariffs to 30% for 90 days, complicates this strategy.
Impact on Make in India
Launched in 2014, Make in India seeks to boost manufacturing and exports, with mobile production a key success. India’s smartphone output reached $50 billion in FY25, with Apple exporting iPhones worth Rs 1.5 lakh crore, per NDTV. Apple’s three plants in Tamil Nadu and Karnataka, with two more planned, employ thousands and support India’s goal to rival China. A rollback could stall this momentum, reducing jobs and export revenue.
Indian officials downplayed the remarks, with a senior official telling India Today that India’s manufacturing ecosystem offers unmatched competitiveness. The Make in India framework, including Production-Linked Incentives (PLI), has attracted giants like Apple, with 97.6% of India-made iPhones exported to the U.S. in 2024 to bypass China tariffs. A shift to U.S. production could disrupt this, as Apple’s supply chain, honed in Asia, lacks U.S. equivalents. Wedbush Securities estimates a U.S.-made iPhone could cost $3,500, versus $1,000 now, making relocation impractical.
Challenges and Opportunities
Trump’s push aligns with his tariff-driven “America First” policy, but experts doubt its feasibility. Bloomberg notes the U.S. lacks the engineering talent and infrastructure for iPhone-scale production, with Apple’s only U.S. product, the Mac Pro, made in Texas. Commerce Secretary Howard Lutnick suggested robotic arms could enable U.S. factories, but Counterpoint analyst Tarun Pathak called relocation “extremely difficult” due to Apple’s sophisticated supply chain.
For India, the risk is tempered by Apple’s assurances and India’s trade leverage. Trump claimed India offered a “zero-tariff” deal, though unconfirmed, which could bolster Make in India if pursued. However, India’s $45 billion trade surplus with the U.S. remains a friction point, potentially inviting retaliatory tariffs
Broader Implications
Trump’s remarks test India-U.S. trade ties, already strained by his ceasefire claims in the Indo-Pak conflict. Apple’s India pivot, driven by tariffs and geopolitics, has made it a linchpin of Make in India, but U.S. pressure could force a strategic rethink. If Apple scales back, competitors like Samsung, also under PLI, may fill the gap, sustaining India’s hub status. The Hindu suggests India’s “significant mobile manufacturing hub” status will endure, given global firms’ reliance on its ecosystem.
The episode underscores the fragility of global supply chains amid political rhetoric. While Trump’s push may not derail Make in India—bolstered by Apple’s commitment and India’s competitiveness—it highlights the need for diplomatic agility to protect India’s manufacturing gains.
-By Manoj H
