President Trump says he advised Apple CEO Tim Prepare dinner to reduce plans to supply iPhones in India and as a substitute re-shore manufacturing again to the US — a requirement that might complicate the corporate’s international provide chain technique.
“I had a little problem with Tim Cook yesterday,” Trump mentioned throughout a state go to to Qatar, referencing his dialog with the Apple chief.
“He is building all over India. I don’t want you building in India.”
Trump added that following his dialogue with Prepare dinner, “Apple will be upping their production in the United States.”
Apple representatives didn’t instantly reply to requests for remark.
Trump’s feedback got here after Apple’s main provider and manufacturing companion, Foxconn, secured approval from the Indian authorities to construct a $433 million semiconductor plant whose operations are scheduled to start by 2027.
Prepare dinner is likely one of the few executives who labored to domesticate a detailed relationship with Trump throughout his first time period by partaking the president immediately via cellphone calls and dinners — a technique that paid off when the Apple boss persuaded him to reduce tariffs that might have impacted iPhones.
In February, Apple introduced a $500 billion funding within the US financial system over 4 years — together with 20,000 new jobs and a Houston AI server plant — because it seeks to sidestep Trump-era tariffs and bolster home innovation.
The remarks from Trump come as Apple goals to shift extra of its iPhone manufacturing to India in an effort to cut back its dependence on China, which has been the corporate’s major manufacturing hub.
In keeping with Bloomberg, Apple is planning to supply nearly all of the iPhones bought within the US from India by the top of 2026.
That technique is designed to mitigate geopolitical dangers and keep away from potential commerce disruptions stemming from US-China tensions.
Nevertheless, producing iPhones within the US could be a monumental problem for the Cupertino-based firm.
Most of Apple’s provide chain, in addition to the expert labor power required for precision meeting, is at present concentrated in Asia.
The corporate has no smartphone manufacturing services within the US, although it has pledged to speculate $500 billion domestically over the subsequent 4 years and increase hiring.
“This is a familiar Trump tactic: He wants to push Apple to localize more and build a supply chain in the US, which is not going to happen overnight,” Tarun Pathak, analysis director at tech evaluation agency Counterpoint, advised Bloomberg.
“Making in the US will also be much more expensive than assembling iPhones in India.”
India has emerged as a key market and manufacturing base for Apple.
The corporate assembled $22 billion value of iPhones within the nation within the 12 months via March, marking a 60% enhance in output in comparison with the prior 12 months.
About 20% of Apple’s international iPhone manufacturing — over 40 million items — is now made in India, primarily at services run by Foxconn Know-how Group and Tata Group’s electronics arm.
Trump’s feedback urged he would settle for Apple producing units in India for the native market however not for export to the US.
“You can build in India if you want, to take care of India,” he mentioned.
The previous president additionally mentioned India had supplied to cut back its steep import tariffs on American items, a part of ongoing commerce discussions between the 2 international locations.
“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 mentioned.
Whether or not Apple will heed Trump’s name to shift extra manufacturing to the US stays to be seen.
Analysts say the complexities of Apple’s provide chain — years within the making — make such a transition expensive and sluggish.
“To disrupt that or to completely move out of India or China will be extremely difficult,” Pathak mentioned.
