Trump's Tariff Threat to Apple Signals Strategic Blow to India's Rise As Global Manufacturing Hub

United States President Donald Trump has once again turned his attention towards India, this time targeting Apple's decision to manufacture iPhones in the country. In a recent outburst on social media, Trump issued a stern warning to Apple CEO Tim Cook, demanding the company shift its production from India to the United States.
Trump claimed he had earlier advised Cook that iPhones sold in the US should be manufactured domestically rather than in India or any other country. In a post on the social media platform Truth Social, Trump wrote, "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S."
The tech giant currently operates three iPhone production units in the country and recently announced a fresh investment of Rs. 13,000 crore to further scale its manufacturing operations. In today's DNA, Rahul Sinha, Managing Editor of Zee News, analysed Trump's 25 percent tariff threat to Apple:
Watch Full DNA Episode Here:
#DNAWithRahulSinha | भारत के नाम से आजकल ट्रंप जलते क्यों हैं ? ट्रंप की 'भारत विरोधी मानसिकता' का विश्लेषण#DNA #DonaldTrump #America #India #Apple #Technology | @RahulSinhaTV pic.twitter.com/vEcJb33tpR — Zee News (@ZeeNews) May 23, 2025
Trump's comments could be seen by many as a direct attack on India's growing role in global electronics manufacturing. His statement has sparked speculations that he views India's Make in India initiative as a threat to the American industry.
Now Apple has two choices: either comply with Trump's demand and move manufacturing to the US, where costs are higher, or continue producing in India and risk a 25 percent tariff. According to estimates, manufacturing an iPhone in the US would triple its cost, potentially raising the price of a Rs. 1 lakh phone to Rs. 3 lakh. In contrast, Indian-made iPhones sold in the US with the proposed tariff would cost around Rs. 1.25 lakh.
The key factor behind Apple's India strategy is lower labor costs, which make production far more economical compared to the US.

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