Trump tells Apple to stop expanding in India

Tim Cook dinner (left) and Trump in a earlier assembly — picture credit score: White Home

President Trump says he has a “little downside with Tim Cook,” apparently as a result of Foxconn — an organization that Cook dinner is just not the CEO of — has been increasing factories in India for years.

Tim Cook dinner has famously handled Trump higher than many or most enterprise CEOs, which resulted in him getting Apple a crucial exemption within the first tariffs, after which at the very least momentary ones within the new “reciporcal” tariffs. However now Trump is saying Apple’s suppliers want to return via on manufacturing within the US, and that the introduced $500 billion plan is not sufficient.

“I had slightly downside with Tim Cook dinner yesterday,” Trump said to press on Might 15, 2025, in line with CNBC. “I mentioned to him, ‘my pal, I handled you superb. You are coming right here with $500 billion, however now I hear you are constructing throughout India.’ I do not need you constructing in India.”

“I mentioned to Tim, I mentioned, ‘Tim look, we handled you actually good, we put up with all of the vegetation that you simply construct in China for years, now you bought construct us,” he continued. “We’re not inquisitive about you constructing in India, India can maintain themselves… we wish you to construct right here’.”

Trump then informed press that Apple can be “upping” its manufacturing within the US, though as ever he gave no particulars. These newest feedback observe a equally unspecific declare on May 12 the place Trump mentioned Tim Cook dinner will “even up his numbers.”

The “reciprocal” tariffs are nonetheless claimed to be punishing different nations, and persuading corporations to deliver manufacturing to the States. In actuality, tariffs are charges paid by US corporations and customers, whereas different nations are benefiting from corporations transferring manufacturing to them.

That does embrace Apple suppliers, who’ve been spending billions to broaden in India over the past a number of years. The result’s that at current, India makes one in five of all iPhones.

Apple doesn’t personal its suppliers, and Foxconn’s plan to double iPhone production in India by the top of 2025 is its personal. Equally, the 2 new iPhone factories being opened by Foxconn and India’s personal Tata Group will not be owned by Apple.

Nevertheless, as way back as 2019, Apple has been reported to have a special team explicitly investigating the prices of transferring out of China for each it and its suppliers. In 2022, it was claimed that the corporate has reportedly also asked suppliers to make such a transfer.

Tariffs simply hasten the transfer to India

This reshoring does now have the benefit that it helps minimize the influence of Trump’s “reciprocal” tariffs. Whereas Apple and different corporations nonetheless face tariffs on imports, the speed is decrease than it might be with China.

Nevertheless, Apple has additionally been increasing to India and Vietnam expressly as a way to minimize its over-reliance on China. Problems with China throughout COVID delayed the iPhone 14 Professional, for example, and subsequently the nation has carried out intermittent power cuts on factories.

Manufacturing won’t return to the US

Within the case of Apple, Trump has repeatedly said that the iPhone could possibly be constructed within the US. Equally, Commerce Secretary Howard Lutnick has mentioned Apple is simply waiting for robots earlier than it strikes manufacturing to the States.

Lutnick mentioned that was what Tim Cook dinner informed him, though there may be some doubt whether or not he and Cook dinner truly spoke. It is also not clear how utilizing robots to construct the iPhone would deliver again jobs to the US.

It is also moot, although, and so far it has been solely a political as it’s impossible for the reason that US has neither the required expert labor, or the uncommon minerals wanted.

Trump’s newest feedback, although, appear to escalate the tensions between the White Home and Apple. They do not bode nicely for the semiconductor tariffs Apple is definite to be hit later.

Apple has not but commented on Trump’s statements. It in all probability will not.