What Did Trump Say?
iPhones
On Apple Manufacturing in India. Trump claimed he told Apple CEO Tim Cook. “I don’t want you building in India. India can take care of themselves. “He expressed disapproval of Apple’s strategy to move a large portion of iPhone manufacturing to India, suggesting he prefers production to return to the U.S..
On India’s Tariff Concessions:
Trump claimed India offered to eliminate all tariffs on U.S. goods. “They literally said: ‘We’ll drop all tariffs for the U.S.”
Context Behind the Statement
Apple’s Manufacturing Shift to India. Apple has been expanding iPhone production in India since 2020. As of 2025, Apple plans to manufacture up to 50% of its iPhones in India by end of 2026, mainly to.Reduce dependence on China, amid U.S.-China tensions. Take advantage of India’s Production Linked Incentive (PLI) schemes.
Cater to rising domestic demand in India.
Apple’s partners (Foxconn, Pegatron, Wistron) are already operating factories in Tamil Nadu and Karnataka. Trump’s Protectionist Trade Policy. Trump, known for his “America First” agenda, has: Pushed for domestic manufacturing. Imposed reciprocal tariffs on countries with trade surpluses against the U.S. In his 2025 election campaign, he has again promoted reshoring of jobs and factories.
India-U.S. Trade Negotiations
India has been seeking to expand trade ties with the U.S., including. Access for textiles, pharmaceuticals, IT services. Greater American investment in semiconductors and defense. To improve ties, India is reviewing tariff cuts, especially on electronics, medical equipment, and agricultural items. Trump’s claim that India offered “zero tariffs” is significant but unverified by Indian authorities.
Apple’s Strategy in India: Why the Move?
Apple’s India Expansion:
In FY2024-25 (till March 2025), Apple assembled $22 billion worth of iPhones in India a 60% increase from the previous year. India now accounts for nearly 14% of global iPhone production. Apple plans to source the majority of U.S.-bound iPhones from India by 2026.
Reasons Behind the Shift:
Geopolitical risk in China: Ongoing U.S.-China tensions, trade wars, and COVID-19 disruptions have forced Apple to diversify supply chains. PLI Scheme Incentives: India offers Production-Linked Incentive (PLI) schemes that reduce the cost of local manufacturing.
Skilled yet cost-effective labor and a huge domestic market make India attractive for Apple and other global tech companies. Geopolitical and Economic Implications For Apple
This puts Apple in a difficult position:
If it follows Trump’s demand, it risks higher production costs in the U.S. If it ignores Trump, it could face tariffs or political backlash. Apple’s diversification from China to India was partly influenced by Trump’s own 2018-2020 tariff wars
Impact India’s local industries if U.S. goods flood the market. Trump’s framing suggests transactional diplomacy: “Drop tariffs or we won’t invest.”
Strategic Backdrop: Supply Chain Realignments. With China becoming increasingly isolated post-COVID and due to rising geopolitical tensions, companies are:
Adopting “China+1” strategies.
India, Vietnam, Mexico are top beneficiaries. India has built strong momentum via: Production-linked incentives. Infrastructure upgrades. Labor and land reforms. Likely Indian Response (as of now, unofficial) India has not formally responded to Trump’s comments.
Likely diplomatic approach: Avoid confrontation. Reiterate commitment to fair trade and manufacturing. Emphasize sovereign policy independence on where companies invest.The “China+1” strategy is a business approach where companies, especially in manufacturing, diversify their supply chains by maintaining operations in China while expanding into at least one additional country. This helps reduce over-reliance on China due to rising labor costs, trade tensions, and geopolitical risks.
Why Companies Are Adopting It:
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Geopolitical tensions (e.g., U.S.-China trade war).
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COVID-19 disruptions exposed vulnerabilities in China-centric supply chains.
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Rising labor costs in China.
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Desire for resilience and risk mitigation in global supply chains.
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