President Donald Trump seems quite not-so-happy with Apple’s decision to make in India. The US President Donald Trump announced that Apple can build factories in India but will face a 25% tariff on products sold in the US if manufactured overseas. Speaking in the White House Oval Office during the signing of executive orders on nuclear energy, Trump referenced a discussion with Apple CEO Tim Cook, stating, “I had an understanding with Tim that he wouldn’t be doing this. He said he’s going to India to build plants. I said, ‘That’s okay, but you’re not going to sell into here without tariffs.’”Trump stressed, “We’re talking about the iPhone. If they’re going to sell it in America, I want it to be built in the United States.” Initially singling out Apple, he later broadened the tariff threat to include all smartphone manufacturers, such as Samsung and Huawei, saying, “It would be anybody that makes that product, otherwise it wouldn’t be fair.” The tariffs are slated to take effect by the end of June 2025.Earlier in a social media post on the same day, Trump doubled down, writing, “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. If that is not the case, a Tariff of at least 25 per cent must be paid by Apple to the US. American jobs come first!”
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During a recent trip to Doha, Trump had pressed Cook to focus on US manufacturing, noting India’s high tariffs make it a difficult market for US companies. He added, “They’ve offered us a deal where they’re willing to charge us no tariff, but I told Tim, ‘I don’t want you building in India. Build here.’” The US President highlighted that India’s tariff policies, among the highest globally, complicate market access, but he insisted on prioritizing domestic production.Apple CEO Tim Cook, addressing tariffs during Apple’s Q2 2025 earnings call, noted that they are determined by the product’s manufacturing location. Industry experts caution that relocating iPhone production to the US would sharply increase costs due to higher labor and operational expenses. If Apple passes these costs to consumers to maintain profit margins, iPhone prices could soar to $3,000 or more, potentially impacting demand. Analysts also point out that building a US-based supply chain would require significant investment and time, given the complex global network Apple currently relies on, primarily in Asia.The policy has sparked debate, with some economists warning that tariffs could raise consumer prices and disrupt global trade, while supporters argue it could boost US manufacturing jobs. The White House has not yet clarified how the tariffs will be implemented or whether exemptions might apply for companies investing in US facilities.In a related news, Apple CEO Tim Cook reportedly declined offer to join tech exectuives and representatives at Trump’s recent trip to the Middle East. The choice appeared to irritate Mr. Trump, said a New York Times report.
