Former President Donald Trump has directly confronted Apple CEO Tim Cook over the company’s iPhone production in India, stating his opposition to the tech giant’s manufacturing expansion in the South Asian nation. During a business event in Doha, Qatar, on May 15, Trump recounted his conversation with Cook, explaining he told him, “Tim, you’re my friend, I treated you very good. You put up with all the plants that you built in China for years. Now you got to build us. We’re not interested in you building in India… India can take care of themselves, they’re doing very well. You want to build in India, you take care of India.”
This development introduces fresh uncertainty for Apple, which has been strategically diversifying its supply chain beyond China, with India, Vietnam and Brazil becoming increasingly important manufacturing locations, partly as a response to ongoing U.S. trade policies and tariffs.
Trump’s pointed remarks suggest a renewed push to bring more high-tech manufacturing to American soil. He asserted that following their discussion, “Apple’s already in for $500 billion, but they’re going to be upping their production.” This claim, however, contrasts with Apple’s historical position and expert analyses, which highlight significant logistical hurdles and a shortage of specialized engineering talent as major obstacles to large-scale iPhone assembly in the U.S.
Apple confirmed a $500 billion U.S. investment over the next four years in February, this does not mean the company will wind back production outside the US. The investment is primarily aimed at areas like AI data centers, including a new facility in Texas, and research and development, rather than comprehensive iPhone manufacturing.
The backdrop to this presidential intervention is a fluctuating trade policy environment. In early April, the Trump administration had announced and then escalated new tariffs on Chinese and Indian imports. These tariffs led to significant market volatility, with Apple’s stock experiencing a nearly 19% drop over three trading days at the time. Analysts projected that such tariffs could inflate Apple’s costs by as much as $40 billion. After starting negotiations with China on their US-trade relationship, tariffs for imports from China are currently set to a temporary lower level for 90 days, with future trading rules staying uncertain.
Manufacturing Realities And Apple’s Strategy
Apple’s leadership has long been vocal about the challenges of replicating its Asian manufacturing prowess in the United States. The late Steve Jobs, in a conversation with President Obama detailed in Walter Isaacson’s biography, famously stated, “You can’t find that many in America to hire,” regarding the necessary engineering workforce.
Tim Cook elaborated in 2017 on the scarcity of tooling engineers in the U.S. compared to China, suggesting that in China, one “could fill multiple football fields” with such specialists; Reuters noted Foxconn’s ability to adapt production plans.
Despite this, Commerce Secretary Howard Lutnick, in an April 6th CBS News appearance, presented an optimistic view of automated U.S. factories taking over iPhone assembly, asserting that the “army of millions and millions of humans screwing in little, little screws to make iPhones, that kind of thing is going to come to America, it’s going to be automated.”
In navigating these trade winds, Apple has made proactive moves. The company executed a notable airlift of iPhones from China and India in late March 2025 to preempt the April tariffs, an operation internally dubbed a “shock and awe” strategy.
Furthermore, Apple’s commitment to India as a manufacturing hub is substantial, with plans to produce up to 25% of its iPhones there by 2027, according to a Financial Times report. Recent reports from Brazilian media outlets also indicate an expansion of iPhone assembly in Brazil with Foxconn, aimed at circumventing U.S. duties. Tim Cook himself, during an Apple earnings call early May, stated that they “do expect the majority of iPhones sold in US will have India as their country of origin.”
Trade Policy Whiplash And Industry Impact
The direct pressure on Apple regarding its India operations comes shortly after a temporary easing in broader U.S.-China trade hostilities. A Joint Statement on U.S.-China Economic and Trade Meeting in Geneva on May 12 detailed a 90-day reciprocal reduction in certain tariffs imposed in early April.
This truce followed a period of intense policy whiplash. After the April 2nd tariff announcements, President Trump mentioned on April 14th that he had spoken with Cook and “helped” by granting a temporary reprieve for electronics.
However, Commerce Secretary Lutnick clarified a day earlier that this exemption was limited and temporary. This back-and-forth led Wedbush analyst Dan Ives to describe the situation as creating “massive uncertainty and chaos for companies trying to plan their supply chain, inventory, and demand,” a sentiment reported by The Washington Post.
The potential cost of U.S.-based iPhone production remains a significant concern, with analysts like Dan Ives of Wedbush Securities suggesting prices could soar, potentially to $3,500, as noted by BBC News. Despite the recent U.S.-China tariff truce, senior Indian government officials from the Ministry of Electronics and Information Technology (MeitY) told Angel One that “there’s no change in Apple’s India strategy” and that “it can only be enhanced,” especially as smartphones from India currently enter the U.S. duty-free, unlike those from China.
Trump’s Renewed “America First” Push For Apple
Trump, during his Qatar remarks, explicitly stated his preference for Apple to manufacture for the U.S. market within America, telling Tim Cook, “we’re not interested in you building in India. They can take care of themselves, they are doing very well.” This stance echoes his long-standing “America First” economic policy.
The administration’s push for domestic manufacturing has been a consistent theme. White House Press Secretary Karoline Leavitt previously asserted that Trump “believes we have the labor, we have the workforce, we have the resources to do it,” pointing to Apple’s $500 billion U.S. investment plan as evidence of the company’s belief in American capabilities.
However, Apple’s diversification efforts, including increasing production in India to reportedly one in five iPhones globally and expanding into Vietnam for other products like iPads and Macs, underscore the complexities and global nature of its supply chain.
The core of the issue, as previously analyzed, is that “The U.S. lacks the engineering depth and infrastructure Apple needs, which makes Trump’s US iPhone manufacturing vision largely symbolic.” The direct conversation between Trump and Cook now brings this tension to the forefront once again, leaving Apple to navigate a challenging geopolitical and economic landscape.
