Donald Trump tells Apple he ‘does not want’ iPhone maker to manufacture in India; says New Delhi to ‘drop all tariffs’ on US
In a recent statement, former U.S. President Donald Trump called on Apple Inc. to cease iPhone manufacturing operations in India, urging the tech giant to relocate its production back to the United States. Trump also demanded that India eliminate all tariffs on American goods, labeling the current trade practices as “unfair.”
Trump’s Stance on Apple’s Manufacturing Strategy
Trump criticized Apple’s decision to shift a significant portion of its iPhone production to India, a move aimed at diversifying its supply chain away from China. He argued that such offshoring harms the U.S. economy and employment. “Apple should manufacture its products in the United States, not in countries that impose high tariffs on our goods,” Trump stated.
Apple has been ramping up its manufacturing presence in India, with reports indicating that the company airlifted approximately 1.5 million iPhones from India to the U.S. in recent weeks to mitigate the impact of new tariffs on Chinese imports. This strategic shift is part of Apple’s broader plan to reduce reliance on Chinese manufacturing amid escalating U.S.-China trade tensions.
India’s Tariff Policies Under Scrutiny
Trump’s comments also targeted India’s tariff regime, particularly the 16.5% duty imposed on imported smartphones and electronics. He demanded that New Delhi eliminate these tariffs to create a more balanced trade relationship. “If India wants access to our market, they must provide reciprocal treatment,” Trump asserted.
Industry experts warn that if the U.S. imposes similar tariffs on Indian exports, it could undermine India’s growing role as a manufacturing hub for companies like Apple. “Reciprocal duties don’t make sense for the U.S., as it doesn’t manufacture phones at all,” said a senior executive from a mobile manufacturers’ association. “If India removes the import duty, it would gain a 20% tariff advantage over China, bringing it on par with ASEAN countries, hastening the shift of iPhone production to India—a win-win for all.”
Potential Impact on Apple’s Operations
Apple’s expansion in India has been significant, with the company producing iPhones worth $17.5 billion in the country last year and exporting $12.8 billion worth of devices. However, the imposition of reciprocal tariffs by the U.S. could make exports from India less competitive, potentially prompting Apple to reconsider its manufacturing strategy.
“If reciprocal duties are imposed by the U.S., Apple’s growth story in India will clearly slow down,” said an industry executive. “They might look at shifting capacity to other countries—Vietnam, where Apple Inc. makes iPads and wearables, or ASEAN member states, which also have no duty on imports.”
Broader Implications for U.S.-India Trade Relations
Trump’s demands come at a time when the U.S. and India are exploring a bilateral trade agreement encompassing various sectors, including pharmaceuticals, steel, automotive, and gems and jewelry. The call for India to eliminate tariffs on U.S. goods adds complexity to these negotiations.
Analysts suggest that while Trump’s stance aims to protect American manufacturing, it could inadvertently hinder the growth of U.S. companies operating in India. “The situation presents a big opportunity for India if the government scraps the duty altogether,” said a trade expert. “However, without a bilateral agreement offering zero duty on smartphones only to the U.S., it would not comply with World Trade Organization rules.”
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