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President Trump asks Apple to stop moving iPhone production to India

MacDailyNews

May 15

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President Trump speaks with Tim Cook at an American Workforce Policy Advisory Board meeting in March 2019. (photo: Al Drago/Bloomberg News)

President Donald Trump stated he has urged Apple’s CEO Tim Cook to halt its partners’ building out manufacturing facilities in India for U.S.-bound devices, encouraging the iPhone maker to increase domestic production as it shifts away from reliance on China.

Jordan Fabian and Sankalp Phartiyal for Bloomberg News:
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“I had a little problem with Tim Cook yesterday,” Trump said of his conversation with Apple’s chief executive officer in Qatar, where he’s on a state visit. “He is building all over India. I don’t want you building in India.” As a result of their discussion, Trump said Apple will be “upping their production in the United States.”
Trump’s comments threaten to throw a wrench into Apple’s plan to import most of the iPhones it sells in the US from India by the end of next year, accelerating a shift beyond China to mitigate risks related to tariffs and geopolitical tensions. Apple makes most of its iPhones in China and has no smartphone production in the US — though it’s promised to hire more workers at home and pledged to spend $500 billion domestically over the next four years.
The iPhone facilities in India produce more than 40 million units per year, about 20% of Apple’s annual output. While Trump has pushed Apple to make iPhones in the US, the lack of domestic engineering and manufacturing talent will make that nearly impossible in the short run.
Trump’s comments suggest he’s fine with Apple building its products in India for that market. “You can build in India if you want, to take care of India,” he said.
Trump also discussed tariff negotiations with India, saying the South Asian country has made an offer to drop import taxes on US goods. India has one of the highest tariff barriers in the world and it’s very hard to sell American products in the planet’s most populous country, Trump said.

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MacDailyNews Take: President Trump’s comments are a component of the ongoing reciprocal trade negotiations with India.

India’s “Make in India” program, launched in 2014, aims to transform the country into a global manufacturing hub. It promotes domestic production by attracting foreign investment, easing regulatory frameworks, and fostering innovation. Targeting sectors like electronics, automobiles, and renewable energy, the initiative seeks to boost job creation, enhance skill development, and reduce reliance on imports. With incentives like tax breaks and streamlined approvals, it has drawn companies like Apple to set up assembly plants. Over the past decade, “Make in India” has spurred economic growth, positioning India as a competitive player in global supply chains while strengthening self-reliance.

The “Make in India” program includes tariffs to promote domestic manufacturing. It imposes higher import duties on foreign goods, like electronics and components, to encourage local production. For example, tariffs on mobile phone parts range from 10-20%, pushing companies like Apple to assemble in India. Exemptions or lower duties apply to inputs for export-oriented manufacturing. These tariffs aim to reduce import dependency, boost job creation, and make Indian-made products competitive while also potentially raising costs for consumers of goods not made in India.

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