Why Trump desperately wants Apple back in the US?
US President Donald Trump has made it clear he's not happy with Apple shifting more of its manufacturing to India. He recently said he told Apple CEO Tim Cook to stop expanding in India and focus on the US instead.Speaking at a business event in Doha, Trump said, 'I had a little problem with Tim Cook yesterday. I said to him, my friend, I am treating you very good. You are coming up with $500 billion, but now I hear you are building all over India. I don't want you building in India.'He went on to say that India is one of the highest-tariff countries and that it is not easy to sell in the Indian market. Trump also said, 'We are not interested in you building in India. India can take care of themselves.'WHY TRUMP WANTS APPLE TO MAKE APPLE IN USBut why is Trump so bothered about Apple's plans in India?One of the key ideas during his election campaign was to bring manufacturing jobs back to the US. His 'Make America Great Again' campaign included a focus on producing goods within the country to create local jobs.CA (Dr.) Suresh Surana said that Trump's comments may be linked to his push to increase manufacturing and job creation in the US."The production of Apple iPhones in India has been a major leap in positioning India as a 'global manufacturing hub' and 'Make in India' initiative. One of the main aspects of the Trump administration's 'Making America Great Again' (MAGA) has been to increase production in the US and create opportunities for local employment," said CA (Dr.) Suresh Surana. However, he added that a better way forward would be a partnership between India and the US to build large global companies, using India's cost advantage and the US's expertise in design and branding.He said that many large US tech firms like Microsoft and Google have grown with support from Indian engineers and lower-cost operations. The same idea can be used in manufacturing by keeping some parts of the work in India and others in the US. 'A collaborative approach is needed,' he said.APPLE'S SHIFT TOWARDS INDIAApple has been expanding its production in India to reduce its reliance on China. In recent years, the company has been working closely with partners like Foxconn, Pegatron and Tata Electronics to make more iPhones in India.Between April 2024 and March 2025, Apple reportedly made iPhones worth Rs 1.83 lakh crore (around $22 billion) in India. This was a 60% jump from the previous year. Nearly 15% of all iPhones made by Apple now come from India, and most of them are shipped to the US and other markets.In March 2025 alone, India exported over 3 million iPhones to the US.Apple started producing iPhones in India in 2017 with the iPhone SE. Since then, it has expanded its production line to include models like iPhone 12, 13, 14, 14 Plus and 15. In late 2024, Apple also began making its high-end models—iPhone 16 Pro and iPhone 16 Pro Max—in India. The company even started assembling AirPods in the country recently.WHY INDIA IS IMPORTANT FOR APPLEIndia has become a key part of Apple's global supply chain. The country offers a large pool of skilled workers and lower labour costs compared to the US or China. Many global companies, including Apple's supplier Foxconn, have increased investments in India to take advantage of these benefits.Foxconn has announced that it will invest $1.5 billion in its India unit to support Apple's growing manufacturing needs.Moving more production to India also helps Apple reduce risks linked to US-China trade tensions and rising tariffs.If Apple follows Trump's suggestion and moves more production to the US, the cost of making iPhones could go up sharply. According to analysts at Bank of America, iPhone prices could rise by as much as 25% due to higher labour costs and the need to build new factories in the US.This would affect both American and Indian consumers. iPhones could become more expensive, and Apple's profit margins might take a hit.Despite Trump's public comments, Apple seems to have no plans to reduce its investment in India. A recent report by the Economic Times said that Apple executives have assured the government that India remains a major part of the company's global manufacturing plan.advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by expert in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)Must Watch
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