Trump Pressures Apple to Cut iPhone Production in India

As global tech supply chains continue to shift, Apple’s manufacturing strategy is under fresh scrutiny. U.S. President Donald Trump has called on Apple to reduce its reliance on India and bring more iPhone production back to the United States. Here's a quick breakdown of what’s happening and why it matters.

Trump urges Apple to move iPhone production from India to U.S.

U.S. Push for Domestic Manufacturing

During a visit to Qatar, President Donald Trump urged Apple CEO Tim Cook to stop expanding iPhone production in India and focus on manufacturing in the U.S. Trump said Apple agreed to boost domestic output following their discussion.

Apple’s Shift Away from China

Apple has been moving production from China to India due to COVID-19 disruptions and U.S.-China trade tensions. In the past year, Apple assembled $22 billion worth of iPhones in India—a 60% increase—mainly through Foxconn and Tata Group.

Tariffs Driving Up Costs

Despite efforts to diversify, Apple still faces high tariffs on Chinese imports, adding nearly $900 million in costs for one quarter alone. India also imposes steep tariffs on U.S. goods, though it’s reportedly offered to lower them.

iPhone Prices May Rise

Apple is considering raising iPhone prices to offset these costs. Analysts estimate the iPhone 16 could rise by 43%, from $799 to over $1,100. New features and designs may help justify the hike, but could hurt Apple’s competitiveness.

The Bigger Picture

Caught between political pressure and global supply challenges, Apple must now navigate a complex landscape as it tries to keep costs down, satisfy governments, and stay ahead of rivals like Samsung.