Apple (AAPL) Faces Trump Pushback Over India Manufacturing Shift

Yahoo

17-05-2025

Apple (AAPL, Financials) came under scrutiny Thursday as President Donald Trump said he urged CEO Tim Cook to halt product manufacturing in India and prioritize U.S.-based production instead.
Trump, citing a little problem with Cook, said he reminded the Apple chief of the company's $500 billion U.S. investment pledge and expressed dissatisfaction over Apple's ongoing expansion in India. Apple currently assembles around 90% of its iPhones in China but is planning to shift about 25% of that production to India in the coming years.
Trump also stated that Apple may increase its U.S. manufacturing efforts, although he offered no details. The president's remarks align with recent White House trade measures, including a 26% reciprocal tariff on Indian imports, temporarily lowered until July. India, in response, has offered to drop tariffs entirely on U.S. goods, Trump said.
Meanwhile, Apple's main Indian assembly partner, Foxconn, received clearance to build a semiconductor plant in partnership with HCL Group. The move highlights Apple's broader diversification strategy, which includes exploring production in Vietnam as well.
Experts say bringing iPhone manufacturing to the U.S. could result in steep price increases. Estimates place the cost of a domestically built iPhone between $1,500 and $3,500. Currently, Apple's only major U.S.-made hardware is the Mac Pro. The company also recently announced a Texas facility for AI server production.
The pressure from Trump introduces political and economic tension into Apple's global supply chain strategy, with potential implications for both production costs and market positioning.
Investors will be watching how Apple balances political pressure with supply chain resilience and whether it makes further concessions toward onshore manufacturing.
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This article first appeared on GuruFocus.