Speaking at a business event in Doha, Qatar, former U.S. President Donald Trump revealed that he had a candid conversation with Apple CEO Tim Cook. Trump said he told Cook that Apple should not build manufacturing plants in India unless the purpose is to serve the Indian market. “India can take care of themselves,” Trump added, criticizing India’s historically high tariff regime.
India’s Tariff Waiver Offer to the U.S.
Interestingly, Trump also claimed that India had offered to waive all tariffs on U.S. products—a significant shift in trade policy if true. Trump’s remarks suggest that he still sees trade negotiations as a key geopolitical tool and wants Apple to align its manufacturing strategy accordingly. He also emphasized Apple’s history of production in China and suggested it’s time the company “upped their production in the U.S.”
Apple’s Growing Footprint in India
Despite Trump’s comments, Apple has already accelerated its manufacturing operations in India. In March alone, Apple shipped $2 billion worth of iPhones from India to the U.S., a record-breaking export figure led by contractors like Foxconn and Tata. Apple manufactured around 40–45 million iPhones in India in 2024, with approximately 14–15 million exported to the U.S.
The company plans to produce most of the iPhones sold in the U.S. from Indian factories by the end of 2026. However, higher production costs—estimated to be 5–10% more than in China—continue to pose challenges.
Vietnam Gains Too, While China Loses Ground
Alongside India, Vietnam has become a crucial part of Apple’s manufacturing diversification strategy. Tim Cook recently stated that most iPads, MacBooks, Apple Watches, and AirPods sold in the U.S. will soon originate from Vietnam. China, meanwhile, will continue to serve as the primary production hub for Apple’s global (non-U.S.) markets.
What This Means
Trump’s comments reflect political priorities rather than market realities. As geopolitical tensions grow and tariffs fluctuate, tech giants like Apple are navigating a complex global supply chain. While the U.S. pushes for domestic manufacturing, companies are hedging risks by investing in alternative markets like India and Vietnam. Whether these strategic shifts will align with political demands remains to be seen.
