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US President Donald Trump asserted that he spoke to Apple Inc CEO Tim Cook in Doha, Qatar and told him there is no need to construct factories in India unless it is to serve that market specifically.
“I had a little problem with Tim Cook yesterday,” Trump said of his conversation with the Apple chief executive in Qatar, where he is on a state visit. “He is building all over India. I don’t want you building in India.” As a result of their discussion, Trump said Apple will be “upping their production in the United States.”
Earlier this month, Cook stated that India will play a significant role in making iPhones destined for the US market. "A majority of iPhones sold in the US will have India as their country of origin," Cook said while announcing the tech giant's latest quarterly results. The statement comes as Apple looks at ways to navigate the impact of Trump's tariff onslaught on its supply chains as well as sales and profit margins.
Apple manufactures most of its iPhones in China and has no smartphone production in the US. Apple and its suppliers have accelerated a pivot away from China, a process that began when Covid-19 lockdowns hurt production at its largest plant. Tariffs imposed by Trump as well as Beijing-Washington tensions prompted Apple to amplify that effort.
Most iPhones made in India are assembled at Foxconn Technology Group’s plant in the south of the country. Tata Group, which acquired Wistron Corp’s local business and oversees Pegatron Corp.’s local facilities, is another major supplier. Both Tata and Foxconn are expanding their presence by building new factories and increasing production capacity in southern India,
In the 12 months ending in March, Apple assembled $22 billion worth of iPhones in India -- marking a nearly 60 per cent rise in output compared to the previous year.
India offered a trade deal with 'zero tariffs': Trump
Speaking at a business gathering, Trump also claimed that India has proposed zero tariffs on American goods as part of efforts to strike a new trade agreement with Washington. Trump stated that India was “willing to literally charge us no tariff” on US exports, though he did not elaborate on the terms or sectors covered by the offer. “They’ve offered us a deal where basically they’re willing to literally charge us no tariff... They’re the highest, and now they’re saying no tariff,” Trump said.
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