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Trump Expresses Displeasure Over Apple's Plans to Expand Production in India, Urges More U.S. Manufacturing

U.S. President Donald Trump expressed his dissatisfaction with Apple's plans to expand production in India, urging the tech giant to focus more on building products in the United States instead. In a recent statement, Trump said, "I had a little problem with Tim Cook yesterday. I told him, 'My friend, I treated you very well. You're coming here with a $500 billion investment, but now I hear you're building all over India. I don’t want you building in India.'" Apple announced its $500 billion investment in the U.S. back in February, emphasizing its commitment to American manufacturing and innovation. However, the company has also been actively diversifying its production away from China, where approximately 90% of iPhones are currently assembled. One of Apple's goals is to manufacture around 25% of its global iPhones in India within the next few years. This move is part of the company's strategy to reduce dependency on Chinese factories and tap into the growing Indian market. During his conversation with Cook, Trump highlighted the long-standing arrangement that allowed Apple to build many of its plants in China. He emphasized, "We’ve put up with all the plants that you build in China for years, and now you have to build for us. We’re not interested in you building in India; they can take care of themselves. We want you to build here." Trump also mentioned that Apple is planning to increase its production in the United States, though he did not provide specific details. These remarks came amidst discussions about broader trade relations between the U.S. and India. Trump criticized India for being one of the world’s highest tariff nations, but acknowledged that the country has proposed a deal to the U.S., offering to impose no tariffs on American goods. Despite this, the White House implemented a reciprocal tariff of 26% on Indian goods in April, which has been temporarily reduced until July. Apple’s primary assembly partner in India, Foxconn, recently received government approval to construct a semiconductor plant in partnership with the HCL Group. This move underscores Apple’s growing investment in the Indian production landscape, despite Trump's push for domestic manufacturing. Over the past few decades, Apple has developed an extensive supply chain in China. However, the company is exploring production in other countries, including Vietnam and India, to spread risks and access new markets. Experts generally consensus that shifting iPhone production to the U.S. would be unlikely due to the significant increase in manufacturing costs. Estimates suggest that producing an iPhone in the U.S. could raise its price to anywhere between $1,500 to $3,500. While Apple has limited its U.S. manufacturing, it does produce some products domestically. For instance, the Mac Pro is manufactured in the U.S., and in February, the company announced plans to open a new manufacturing facility in Texas to produce servers for Apple Intelligence, its AI system. CNBC has contacted Apple for a comment on Trump's statements. The tension between Trump's desire for more American-made Apple products and the company's strategic shift toward India reflects the complex interplay of trade policies, economic interests, and global supply chain dynamics. As Apple continues to navigate these challenges, the outcome of this dialogue could have significant implications for both the company's future production decisions and broader U.S.-India trade relations.

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