Trump Slams Apple’s India Plans, Pushes US Manufacturing – But Is It Feasible?

Just days after taking full credit for brokering a ceasefire between India and Pakistan, U.S. President Donald Trump is back in the spotlight—this time, targeting Apple CEO Tim Cook over the company’s growing manufacturing footprint in India.

During his visit to Doha, Trump voiced his disappointment over Apple’s plans to expand iPhone production in India, calling out the country’s high tariffs. He claimed that India had offered to eliminate tariffs on U.S. goods, stating, “They are willing to literally charge us no tariff.”

Trump went a step further, asserting that Apple would move production back to the United States—a claim that has raised eyebrows given Apple's long-standing reliance on Asian manufacturing.

Following the U.S.-China trade war, Apple began diversifying its supply chain away from China. As of the 2023–24 financial year, 14% of iPhones are assembled in India, with projections estimating 20–25% by 2027.

While the U.S. has imposed 145% tariffs on Chinese imports, China has retaliated with 125% tariffs on American goods, making cross-border trade increasingly volatile.

President Trump has become known for his "tariff tantrums"—frequent announcements of new tariffs, followed by reversals. Though a 90-day pause on new tariffs is currently in place for all countries except China, Trump has made it clear that all countries should expect a minimum 10% tax on exports to the U.S.

This unpredictability has fueled concerns among companies like Apple, which depend on global supply chains and cost efficiencies.

Can Apple Shift iPhone Production to the U.S.?

While Trump insists on onshoring production, moving iPhone assembly to the U.S. is economically impractical.

1. High Labor Costs

U.S. labour is 5–10 times more expensive than in China or India. Apple requires tens of thousands of workers for final assembly. U.S. wages would skyrocket production costs, cutting into profit margins.

2. Lack of Manufacturing Ecosystem

China’s Shenzhen region offers a dense, efficient network of component suppliers, manufacturers, and logistics hubs. The U.S. lacks this tightly integrated ecosystem, making assembly slower, costlier, and less scalable.

3. Limited Flexibility and Speed

Asian partners like Foxconn can rapidly scale operations with 24/7 shifts. U.S. labour laws and infrastructure limit Apple’s ability to scale quickly or handle demand surges.

4. Skills Gap

The U.S. has fewer workers trained in precision electronics assembly. In contrast, India and China have workforces specifically trained for high-volume electronics manufacturing.

5. Supply Chain Challenges

Core iPhone components—including chips, displays, batteries, and camera modules—are still made in Asia. Assembling in the U.S. would require importing nearly all parts, increasing costs due to shipping, tariffs, and delays.

If Apple shifts production to the U.S., the cost of manufacturing iPhones would rise sharply, likely resulting in higher retail prices for consumers. This could hurt Apple’s global sales and weaken its competitiveness in markets where price sensitivity is high.

Apple has previously attempted U.S. manufacturing—most notably with Foxconn’s failed $10 billion plant in Wisconsin, which never became an iPhone assembly facility. That experience underscored the practical and financial hurdles of producing iPhones in the United States.