SOURCE : NEW18 NEWS
Last Updated:May 24, 2025, 10:01 IST
India is hopeful Apple will prioritize business viability over Trump’s political pressure against expanding manufacturing in India, which offers top facilities and talent.
US President Donald Trump has said Apple’s iPhones sold in the US should be manufactured domestically or face a steep 25 per cent tariff if built in India or anyplace else.
India offers the best facilities and talent for global companies like Apple to set up their plants, and remains optimistic that the tech giant will continue to prioritise business viability over political pressure, according to top government sources.
“India is confident that Apple will weigh profits over any pressure from the Trump government,” a senior official said. The official responded to Trump’s comments, which warned Apple against expanding its manufacturing base in India or anywhere else.
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“India offers the best facility and talent for global companies to set up plants in the country,” the official added.
US President Donald Trump on Friday said iPhones sold in the United States should be manufactured domestically or face a steep 25 per cent tariff if built in India or anyplace else.
In a post on Truth Social on Friday, Trump wrote, “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the US. Thank you for your attention to this matter!”
According to the sources, India is hopeful that the matter will be resolved and sees no immediate threat to Apple’s ongoing or future investments in the country. “We are hopeful of this being sorted out,” the government source added.
“Tariffs also provide platform for competition and incentive to grow to the indigenous corporate sector,” the official said.
Government sources also emphasised that India will continue to diversify its industrial partnerships. “We have been, and will be, exploring other sectors, countries, and players in this space,” the official noted, highlighting the country’s broader strategy to remain a global manufacturing and technology hub.
India has emerged as a critical hub for Apple’s manufacturing operations in recent years, with major production handled by suppliers like Foxconn, Pegatron, and Wistron. The country’s combination of a large workforce, growing consumer base, and supportive policies have made it a strategic location for Apple’s expansion outside of China.
Last week, during a business event in Doha, Qatar, on May 15, Trump said he had a direct conversation with Apple CEO Tim Cook, advising him against expanding Apple’s manufacturing footprint in India, unless it is specifically to serve the Indian market.
“Told Apple CEO Tim Cook we’re not interested in you building in India, they can take care of themselves,” Trump had said.
Trump had also said Apple would increase its production in the United States. “Apple will be upping their production in the United States,” he added.
According to reports recently, Apple aimed to make most of its iPhones sold in the US at factories in India by the end of 2026, and is speeding up those plans to navigate potentially higher tariffs in China, its main manufacturing base.
Importantly, India and the US are poised to sign the first tranche of the much-anticipated Bilateral Trade Agreement (BTA) before July, according to reports.
A round of meetings with the United States Trade Representative has already concluded.
- First Published:
May 24, 2025, 09:58 IST
