Apple’s choice to manufacture in India appears to have angered President Donald Trump. According to US President Donald Trump, Apple is allowed to establish facilities in India, but if its products are made elsewhere, they would be subject to a 25% duty on US-sold goods. Speaking in the White House Oval Office during the signing of executive orders on nuclear energy, Trump referenced a discussion with Apple CEO Tim Cook, stating, “I had an understanding with Tim that he wouldn’t be doing this. He said he’s going to India to build plants. I said, ‘That’s okay, but you’re not going to sell into here without tariffs.”
Trump stressed, “We’re talking about the iPhone. If they’re going to sell it in America, I want it to be built in the United States.” Initially singling out Apple, he later broadened the tariff threat to include all smartphone manufacturers, such as Samsung and Huawei, saying, “It would be anybody that makes that product, otherwise it wouldn’t be fair.” The tariffs are slated to take effect by the end of June 2025.
Earlier in a social media post on the same day, Trump doubled down, writing, “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. If that is not the case, a Tariff of at least 25 per cent must be paid by Apple to the US. American jobs come first!”
Trump had urged Cook to concentrate on US manufacturing during a recent trip to Doha, pointing out that India is a challenging market for US businesses due to its high tariffs. He added, “They’ve offered us a deal where they’re willing to charge us no tariff, but I told Tim, ‘I don’t want you building in India. Build here.’” The US President highlighted that India’s tariff policies, among the highest globally, complicate market access, but he insisted on prioritizing domestic production.
When discussing tariffs at Apple’s Q2 2025 earnings call, CEO Tim Cook pointed out that the site of the product’s manufacture determines them. Due to increased labor and operating costs, industry analysts warn that moving iPhone manufacture to the US would result in a significant cost hike. The demand for iPhones may be impacted if Apple raises pricing to $3,000 or higher in order to preserve profit margins. Analysts also note that, considering the intricate worldwide network Apple now depends on, mostly in Asia, establishing a US-based supply chain would take a substantial amount of time and money.
Supporters of the proposal contend that tariffs might increase manufacturing employment in the US, while critics fear that they could increase consumer costs and disrupt international commerce. The White House has not yet made it clear how the tariffs would be applied or if businesses that invest in US facilities will be excluded.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
