Donald Trump Urges Apple to Abandon India Plans: “Build in the U.S., Not All Over India”

U.S. President Donald Trump recently revealed that he urged Apple CEO Tim Cook to stop building Apple products in India.

Trump expressed displeasure at Apple’s growing production footprint in India and pushed for more manufacturing within the United States.

“I had a little problem with Tim Cook yesterday,” Trump said. “I said to him, ‘my friend, I treated you very good. You’re coming here with $500 billion, but now I hear you’re building all over India.’ I don’t want you building in India.”

Trump referenced Apple’s earlier announcement of a $500 billion investment in the U.S. made in February.

Apple’s Shift Away from China

Apple has been gradually increasing production in India, aiming to manufacture around 25% of its global iPhone output in the country over the next few years.

This move is part of Apple’s strategy to reduce its dependence on China, where about 90% of its iPhones are currently assembled.

“I said to Tim, I said, ‘Tim look, we treated you really good, we put up with all the plants that you build in China for years, now you got build us. We’re not interested in you building in India, India can take care of themselves … we want you to build here,'” Trump added.

Although Trump claimed Apple would be “upping” its production in the U.S., he provided no further details. CNBC has reached out to Apple for comment.

Tensions in U.S.-India Trade Relations

Trump made these remarks while addressing broader U.S. trade relations with India. He referred to India as “one of the highest tariff nations in the world,” though he acknowledged that India had offered a deal where “they are willing to literally charge us no tariff.”

Under Trump’s trade protectionist policies introduced in April, a 26% reciprocal tariff was imposed on Indian goods. This tariff is currently temporarily lowered until July.

Apple’s Manufacturing Partners in India

Apple’s primary assembly partner in India, Foxconn, was recently approved to build a semiconductor facility in the country in collaboration with HCL Group. This development further strengthens Apple’s production base in India.

Despite Apple’s efforts to diversify its supply chain beyond China, experts argue that moving iPhone production to the U.S. would be economically unfeasible.

The cost of an iPhone could range from $1,500 to $3,500 if assembled in the United States.

At present, Apple manufactures only a few products domestically, including the Mac Pro. The company has also announced a Texas-based facility to produce servers for its Apple Intelligence system.

Trump’s Remarks During Middle East Visit

While on a state visit to Qatar, Trump reiterated his concern about Apple’s India expansion. “He is building all over India. I don’t want you building in India. India can take care of itself,” Trump said.

He noted that Apple had committed to investing $500 billion in the U.S. and building plants domestically.

“I spoke to Tim Cook this morning, and he’s going to even up his numbers… $500 billion. He’s building a lot of plants in the United States,” Trump stated from the Oval Office.

He also remarked on the difficulty of selling American goods in India, despite India’s proposal of a “no-tariff” trade agreement.

Potential Impact on India

Trump’s stance could challenge India’s aspirations to become a major tech manufacturing center. Apple has been ramping up iPhone production in India, with major suppliers such as Foxconn and Tata Group increasing capacity in southern India.

Tata’s electronics arm acquired Wistron Corp’s local operations and is running Pegatron’s facilities in India. Bloomberg earlier reported that both Tata and Foxconn are expanding production in the region.

In the 12 months through March, Apple assembled $22 billion worth of iPhones in India, representing a nearly 60% increase from the previous year.

Complexity of iPhone Manufacturing

Trump’s dissatisfaction comes amid reports that Apple plans to shift U.S.-bound iPhone assembly from China to India. “I had a little problem with Tim Cook yesterday,” Trump said in Qatar.

“I said to him: ‘Tim, you’re my friend. You’re coming here with 500bn but now you’re building all over India. I don’t want you building in India.’”

The iPhone’s complex manufacturing process includes over 1,000 components sourced globally, with final assembly traditionally based in China.

“I said to Tim … we’ve treated you really good, we’ve put up with all the plants that you’ve built in China for years, now you got to build [for] us,” Trump said. “We’re not interested in you building in India, India can take care of themselves … we want you to build here.”

Though Trump claimed Apple would increase U.S. production, no specific plan was disclosed.

Economic Realities and Tariff Talks

Analysts and financial experts warn that producing iPhones in the U.S. would be highly expensive. According to Wedbush Securities, the cost of an iPhone could triple if its assembly moved to the U.S.

India’s Prime Minister Narendra Modi has actively promoted the country as a smartphone manufacturing hub. In March, Apple’s suppliers Foxconn and Tata shipped nearly $2 billion worth of iPhones to the U.S., a record high, to avoid looming tariffs.

As Trump continues to push for domestic manufacturing, Apple may find itself caught between economic pragmatism and political pressure.