President Trump is engaging with Apple CEO Tim Cook regarding the company’s production plans in India, stating that iPhone manufacturing should focus more on the US.
“I had a chat with Tim yesterday; he’s my friend, and I’ve always treated him well. He brought $500 billion investment, but now it seems like everything’s being built in India. That’s not what I want,” Trump remarked.
“Tim, we’ve supported you. We’ve been holding back your factories in China for years. Now you need to focus here. India can manage on its own; they’re doing fine,” he continued. “And yes, there’s going to be an increase in production in the US.”
Earlier this week, Trump revealed that he had conversed with Cook after announcing a deal with China aimed at reducing tariffs over 90 days. Cook, who previously pledged to invest $500 billion in the US in the next four years, is considering the establishment of additional manufacturing sites.
Apple has been notably affected by Trump’s trade tensions with China, as most of its products are manufactured there. However, the company is actively looking to diversify its production across countries like India and Vietnam.
Initially, all three nations faced considerable import duties under Trump’s tariff structure, which posed risks to Apple’s business model, potentially raising consumer prices. Tariff rates were set at 34% for China, 26% for India, and 46% for Vietnam.
The tariffs imposed by both Beijing and Washington resulted in increased prices, with substantial tariffs on US imports from China and American products.
Eventually, Trump paused the majority of these “mutual” tariffs due to market instability, maintaining only the Chinese tariffs and a basic 10% tariff. He also exempted certain electronic devices, like Apple’s iPhones, from customs duties on imports from China.
On Monday, the president shared that negotiations continue for a more stable trade arrangement, with both the US and China agreeing to lower tariff rates to 30% and 10%, respectively.
This trade agreement marks a shift after months of industry tension, bringing a sigh of relief, particularly within the tech sector. Nevertheless, experts caution that tariff levels remain high, and sector-specific threats linger for technology products.
