White Home commerce advisor Peter Navarro sharply criticized Apple CEO Tim Prepare dinner on Monday over the corporate’s ongoing reliance on China for iPhone manufacturing, intensifying stress from the Trump administration for Apple to convey again manufacturing to the US.
“Going back to the first Trump term, Tim Cook has continually asked for more time in order to move his factories out of China,” Navarro mentioned throughout an look on CNBC’s “Squawk on the Street” on Monday.
“I mean it’s the longest-running soap opera in Silicon Valley.”
Navarro mentioned he struggled to grasp why Apple hasn’t re-shored its manufacturing and shifted its advanced provide chain again to the US.
“With all these new advanced manufacturing techniques and the way things are moving with AI and things like that, it’s inconceivable to me that Tim Cook could not produce his iPhones elsewhere around the world and in this country,” he mentioned.
The Publish has sought remark from Apple.
Navarro’s remarks observe months of escalating rhetoric from President Trump, who has made Apple a focus of his renewed push for home manufacturing.
Trump has demanded that Apple manufacture all iPhones offered within the US inside the nation, threatening to impose a 25% tariff on gadgets made overseas.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump posted in Might 2025 on Reality Social.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the US.”
Apple at the moment assembles the majority of its iPhones in China, although it has more and more shifted manufacturing to India in an effort to diversify provide chains and sidestep rising prices related to tariffs.
Regardless of these strikes, analysts and provide chain specialists argue that totally relocating iPhone manufacturing to the US could be logistically and economically impractical. Some estimates counsel a domestically manufactured iPhone may value as a lot as $3,500.
Throughout Trump’s first time period, Apple pledged to assemble its $3,000 Mac Professional in Texas, however the firm continues to supply only a few gadgets inside the US.
In February, Apple mentioned it could make investments $500 billion within the US, together with towards assembling some AI servers.
Trump has made clear that he views Apple’s shift to India as unacceptable. The president mentioned he communicated this message on to Prepare dinner in Might.
“You’re my friend. I’ve treated you very well… but now I hear you’re expanding over India. I don’t want you in India. We want you to produce here [in the U.S.],” he mentioned in feedback directed at Prepare dinner.
“India can handle themselves, they are thriving, we want you to manufacture here,” Trump mentioned.
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The 2 reportedly met on the White Home in Might, shortly earlier than Trump issued public threats of tariffs, though no particulars of the assembly have been disclosed.
Whereas Apple has averted public confrontation, its technique to maneuver some manufacturing to India and Vietnam displays ongoing efforts to diversify. Nevertheless, the corporate’s reliance on China stays substantial on account of a mix of things, together with scale, infrastructure, labor and provide chain integration.
China gives Apple with an enormous and extremely expert manufacturing workforce. A single Apple provider in China can rent 3,000 staff in a single day — capabilities unmatched elsewhere.
The nation graduates about 600,000 engineers yearly, in comparison with 70,000 within the US, providing Apple the technical expertise wanted for its advanced gadgets.
Moreover, China’s manufacturing ecosystem gives the precision, tooling and tightly clustered suppliers that Apple is dependent upon to supply its flagship merchandise. Many elements are manufactured simply miles from last meeting crops, permitting for environment friendly, just-in-time logistics and speedy changes to modifications in demand.
Regardless of rising labor prices in China, the general value of manufacturing stays decrease than within the US on account of established infrastructure, logistics networks and authorities incentives like subsidies and tax breaks.
