Trump warns Apple CEO Tim Cook off manufacturing iPhones in India

US president Donald Trump has publicly urged Apple CEO Tim Cook to halt the tech giant’s rapid expansion of , instead calling for increased production on American soil.

This development comes even as Apple, long reliant on Chinese factories, accelerates its efforts to diversify its supply chain in response to geopolitical tensions and pandemic-era disruptions.

During a recent conversation, Trump reportedly had a ‘bit of a disagreement’ with the Apple CEO.

Trump said: “I had a bit of a disagreement with Tim Cook yesterday. I told him, ‘My friend, I’ve treated you very well. You’re bringing $500 billion here, but now I hear you’re setting up operations all over India. I don’t want you establishing in India.’”

Trump’s remarks reflect his administration’s broader protectionist stance, which has seen the imposition of new tariffs on imports from more than 180 countries, including a 26 per cent tariff on Indian goods.

Modi did everything Trump asked for. He cut tariffs to nearly zero for the United States. He even compromised our national interests in the fight against Pakistani terror when Trump made a call.

Now, Trump is reportedly pushing Apple CEO Tim Cook to move the manufacturing… pic.twitter.com/q9ifvYDpJM

— Congress Kerala (@INCKerala) May 15, 2025

Trump’s comments come at a critical juncture for Apple as well. The company has been ramping up its manufacturing presence in India, aiming to produce about 25 per cent of all iPhones globally in the country within the next few years — a significant leap from the estimated 10–15 per cent currently assembled here.

In the year ending March 2025, Apple manufactured approximately $22 billion worth of iPhones in India, marking a 60 per cent increase from the previous year.

Apple’s pivot to India is part of a wider strategy to reduce dependence on China, which still accounts for around 80–90 per cent of its iPhone production. The shift gained urgency following Covid-19 lockdowns and escalating US–China tensions, which exposed vulnerabilities in Apple’s supply chain.

India, with its burgeoning manufacturing sector and government incentives under initiatives like ‘Make in India’, has emerged as a key alternative.

Major Apple suppliers such as Foxconn and Tata have invested heavily in Indian facilities, with Foxconn planning to double iPhone output in India to 25–30 million units in 2025.

This expansion has not only bolstered India’s role in the global tech supply chain but also marked milestones such as the first-ever manufacturing of the iPhone Pro in India.

For India, Apple’s manufacturing expansion is a significant economic boon. It brings high-value jobs, technology transfer and global investment, reinforcing the country’s ambitions to become a major electronics manufacturing hub.

Meanwhile, Indian officials have also offered to reduce tariffs on US goods, hoping to deepen trade ties with Washington.

Now, days after saying “We will do a lot of trade” in the context of the India-Pakistan 'ceasefire', Trump’s pushback introduces new uncertainties.

If Apple were to heed Trump’s call and shift production to the US, experts warn of sharply higher costs — estimates suggest a US-made iPhone could cost between $1,500 and $3,500, compared to current retail prices under $600!

The US simply lacks the scale and supply chain depth of Asian manufacturing hubs, so that Apple currently produces only a handful of products domestically, such as the Mac Pro built in Texas.

Globally, Apple’s supply chain recalibration is emblematic of broader trends: multinational firms are reassessing their dependencies, balancing cost, resilience and political risk.

While India stands to gain as companies diversify away from China, Trump’s rhetoric signals that the US may seek to claw back some of this manufacturing heft — potentially setting up new trade tensions and complicating the calculus for companies like Apple.

Trump’s stance, while resonant with his ‘America First’ agenda, appears at odds with economic realities. The US simply cannot replicate the vast, skilled and cost-effective manufacturing ecosystem found in Asia overnight. For Apple, India offers both a hedge against Chinese risks and access to one of the world’s fastest-growing consumer markets. For India, Apple’s investment is a validation of its industrial policy and a catalyst for further growth.

For now, the situation is still fluid. Tariffs, trade negotiations and political pressures could reshape the landscape again. And India is, of course, actively negotiating with Washington — negotiations termed ‘complicated’ by external affairs minister S. Jaishankar just today, even as he dismissed reports of India offering the US a zero-tariff deal!

So Apple, for its part, must navigate these cross-currents, balancing its own shareholder demands with global supply chain efficiency — and the competing priorities of the world’s two largest democracies.

Now, the tussle over where the iPhone is made is more than a corporate logistics issue — it is a microcosm of the shifting dynamics of globalisation, industrial policy and geopolitical rivalry. The world — and India — will be watching Apple’s next move closely.