Trump’s Discontent Over Apple’s Shift to India for Production

As geopolitical tensions escalate between the United States and China, Apple Inc. has been diversifying its production operations away from China, leading to friction with President Donald Trump. During a recent meeting in Qatar, Trump expressed dissatisfaction with Apple’s increasing investment in India, arguing that the iPhone maker should focus on expanding production within the United States instead.

President Trump Takes Issue with Apple’s Expansion in India

According to reports from CNBC, President Trump noted he had a “little problem” with Apple’s Chief Executive Tim Cook. During their discussions, Trump articulated his concerns by stating, “I treated you very good,” implying that he expected Apple to prioritize U.S. production. He voiced his displeasure over the company’s burgeoning manufacturing footprint in India, asserting, “I don’t want you building in India.”

Apple’s Investment Strategy Amid Tariffs

In February, Apple announced a commitment of $500 billion to U.S. investments over the next four years. However, most of these funds appear to target sectors like server production and Apple TV+ programming, rather than the actual manufacturing of consumer devices. Currently, Apple does not produce any smartphones domestically, and the company has been actively seeking alternatives to Chinese production since the COVID-19 pandemic stressed global supply chains.

Despite desires to relocate operations, the scope of manufacturing in the U.S. is challenging. An analyst from Wedbush Securities, Dan Ives, pointed out that if major U.S. technology companies find themselves penalized by tariffs on imported goods, it could drastically reshape the technological landscape for years to come. Notably, Ives emphasized that a U.S.-manufactured iPhone could bear a staggering price tag of around $3,500—more than triple its current cost around $1,000.

The Challenges of Domestic Manufacturing

Experts agree that shifting manufacturing back to the United States is not a straightforward task. Dipanjan Chatterjee, an analyst with Forrester Research, noted that adapting the manufacturing footprint and supply chain setup can be prohibitively expensive and time-consuming. Chatterjee remarked, “It’s not something you want to take action on unless you think it is absolutely the right thing to do.”

According to an earlier assessment by D.A. Davidson analyst Gil Luria, a realistic timeframe for any significant move toward U.S. manufacturing might extend between five to ten years, and even then, such a shift would only slightly increase production costs. He stressed that the current disparity between China and the U.S. in manufacturing capabilities is more a difference in skills than in pricing.

Apple’s Manufacturing in India: A Growing Trend

Despite Trump’s push for domestic manufacturing, Apple plans to ramp up its production in India, which has become increasingly significant for the company. Reports from Bloomberg indicate that approximately 20% of Apple’s iPhones—over 40 million devices—were produced in India during the previous year. By the end of 2026, Apple aims for the majority of its U.S. iPhone sales to originate from India, leveraging partnerships with suppliers like Foxconn Technology Group, which recently received approval to establish a chip plant in the country.

U.S. Policies and Global Technology Standards

The shift in global production dynamics is compounded by the U.S. government’s regulations on foreign technology firms, particularly in regard to Huawei Technologies Co. Ltd.. Recent guidance from the U.S. Commerce Department suggested that the use of Huawei’s technology might lead to penalties, further complicating international trade in technology.

Richard Windsor, a prominent analyst, remarked on the geopolitical landscape, explaining, “If the majority of the planet is aligned against China when it comes to technology standards, then this will greatly help the USA and the West to win the ideological struggle that is currently being fought in the technology sector.” Meanwhile, he questioned the necessity of targeting Huawei’s chips, pointing to economic realities that may determine their choice over Western alternatives.

Conclusion

While Apple continues to navigate complex geopolitical tensions, the company faces pressure from the U.S. government and President Trump to prioritize domestic manufacturing. As the tech sector adapts to increasingly stringent trade policies and rapidly evolving consumer expectations, the impacts on costs, product pricing, and global supply chains will remain a critical focus for industry analysts and investors alike.