Economic analysts say Trump’s stance reflects deeper concerns about Modi government policies
US President Donald Trump has once again called on Apple to manufacture its iPhones in the United States, warning the tech giant that it faces a tariff of at least 25% if it continues to produce in India.
Posting on Truth Social, Trump wrote, “I have long ago informed Tim Cook of Apple that I expect their iPhones, sold in the United States of America, to be manufactured and built here in the United States — not India, or anywhere else. If not, Apple must pay a tariff of at least 25%.”
This statement sent shockwaves through Apple’s stock, causing a 2.6% drop and wiping around $70 billion (£52 billion) from its market value, bringing it just below $3 trillion.
Trump’s latest remarks are part of a pattern of expressing unease about Apple’s growing manufacturing presence outside the US. Earlier this month, he reiterated his disapproval of iPhones being produced in India.
“I told Tim — we’ve treated you really well, we tolerated all those plants you’ve built in China for years, but now you’ve got to build for us. We don’t want your production in India. India can take care of itself… we want you to build in the US,” Trump stated, adding that Apple’s investments should prioritize American jobs.
Economic Concerns Over India
Economists see Trump’s escalating distrust of India as driven by broader concerns about the Modi government’s economic policies. Some argue that New Delhi’s unfulfilled reform promises have left India looking like an unreliable partner for American industries.
Analysts also note that Trump’s consistent pressure on US companies to pull back from India highlights a growing skepticism within the US about India as a reliable manufacturing base.
Apple CEO Tim Cook recently acknowledged that most iPhones sold in the US during the June quarter would be produced in India. However, analysts believe that bringing this production back to the US would be extremely costly.
The challenge, they argue, lies in the lack of flexible manufacturing infrastructure and workforce in the US that China currently offers. A recent estimate by Wedbush Securities found that a US-made iPhone could cost more than three times the current price, potentially reaching $3,500.
Tariffs vs. Supply Chains
Many analysts believe that Apple would find it more practical to absorb the tariffs rather than attempt to move its manufacturing base. Apple’s sophisticated supply chains, built over years and heavily based in China, are critical to its success. Moving production to the US could reduce Apple’s gross margins by 3 to 3.5 percentage points in fiscal 2026.
The US remains Apple’s largest market for iPhones, with over 60 million units sold annually. Decisions about where to manufacture these phones are crucial to the company’s bottom line and its future growth.
