U.S. President Donald Trump has expressed opposition to Apple expanding its manufacturing operations in India—unless the move is solely intended to serve the Indian market. Trump made these remarks during a meeting with U.S.-Qatar business leaders, adding that India had “offered to drop all tariffs” on the United States.
“I had a little problem with Tim Cook yesterday. I said, ‘Tim, you’re my friend. I’ve treated you very good. You’re coming here with a $500 billion announcement, and now I hear you’re building all over India. I don’t want you building in India. You can build in India if you want to take care of India, because India is one of the highest tariff nations in the world,’” Trump said.
Trump’s comments come at a time when Apple CEO Tim Cook recently confirmed that due to ongoing trade uncertainties involving China, the company plans to manufacture a majority of iPhones sold in the U.S. from India in the June quarter. Over the coming years, Apple aims to shift as much as 25 per cent of its total iPhone production to India—a major strategic move away from China, which has long served as Apple’s primary manufacturing hub.
Cook made this announcement during a call with investors following Apple’s latest financial results. However, in the time since, the U.S. and China—initially locked in a tariff battle—have reached a trade truce, potentially altering the trajectory of global supply chains.
How the US-China Tariff War Benefited India
The easing of U.S.-China tensions comes at a time when Indian suppliers had started to gain from escalating tariffs. U.S. buyers began turning to Indian manufacturers after the U.S. imposed a 145 per cent tariff on Chinese goods. This shift was expected to accelerate Apple’s diversification into India, where it has already built a significant production ecosystem.
However, any softening in U.S.-China trade relations could reduce the urgency for American companies to relocate their manufacturing operations to India, posing a challenge to New Delhi’s supply chain ambitions.
Despite the evolving geopolitical landscape, Indian government officials remain cautiously optimistic. They believe that Apple’s decision to expand in India predates the tariff-related pressures and stems from New Delhi’s long-term strategy to position itself as a global manufacturing hub—particularly in electronics.
India launched a major policy push in 2020 with the Production Linked Incentive (PLI) scheme, aimed at incentivizing electronics manufacturing. Apple was among the first to take advantage, beginning with assembly of older iPhone models and later scaling up to include the entire iPhone lineup, including premium Pro variants for global markets.
Apple: Biggest Winner from Indian Subsidies
Apple and its contract manufacturers have emerged as the top beneficiaries of the Indian government’s PLI scheme. According to earlier reporting by The Indian Express, the Indian government disbursed nearly $1 billion under the scheme between 2022-23 and 2024-25, with over 75 per cent of that amount going to Apple’s suppliers.
The company's contract manufacturers—Foxconn, Pegatron, and Tata Electronics (which recently acquired Wistron and Pegatron’s Indian operations)—have received a combined subsidy of nearly ₹6,600 crore over three years. In FY 2023-24, Foxconn, Apple’s largest global manufacturing partner, received the highest subsidy disbursement of ₹2,450 crore. However, in FY 2024-25, Foxconn did not receive any new incentives, while Samsung topped the list with a subsidy of nearly ₹958 crore for the year.
As the U.S. and China move toward a more stable trade relationship, the trajectory of Apple’s supply chain shift to India remains uncertain. China still holds considerable advantages, including superior technological infrastructure and a skilled workforce in electronics manufacturing.
Nonetheless, India remains confident in its policy-driven manufacturing push. Apple’s deepening presence in the country—fueled by production incentives and growing domestic demand—may continue, even if U.S.-China trade frictions ease. However, Trump’s remarks signal that the political climate around offshoring to India could become more complex, especially as U.S. leaders weigh economic strategy against geopolitical alliances.
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