U.S. President Donald Trump stated on Thursday that he expressed to Apple CEO Tim Cook his disapproval of the tech company establishing its production facilities in India, critiquing the company’s plans to shift manufacturing away from China and encouraging him to focus on domestic production.
“I had a minor disagreement with Tim Cook yesterday,” Trump commented. “I told him, ‘my friend, I’ve treated you very well. You’re bringing $500 billion here, but now I’m hearing you’re expanding in India.’ I don’t want you to set up operations in India.”
Trump was referring to Apple’s pledge of a $500 billion investment in the U.S., which was announced earlier in February.
Apple has been increasing its manufacturing in India with the intention of producing about 25% of global iPhones within the next few years, as it aims to lessen its dependence on China, where roughly 90% of its flagship smartphone is presently assembled.
“I told Tim, ‘Look, we have treated you exceptionally well. We’ve tolerated all the factories you’ve built in China for years, and now it’s time for you to develop here. We’re not interested in you building in India; India can manage on its own… we want you to manufacture here,’” Trump stated.
The U.S. president mentioned that Apple is planning to increase its production in the United States, though he did not provide more specifics.
CNBC has contacted Apple for comments.
Trump made these remarks about the American technology company while addressing the U.S. government’s broader trade relationship with India.
Trump referred to India as “one of the countries with the highest tariffs globally,” adding that the nation has proposed a deal to the U.S. in which “they are willing to literally impose no tariffs on us.”
As part of the trade protectionist measures introduced by the White House in April, Trump has enacted a “reciprocal tariff” of 26% on goods from India, which has been temporarily reduced until July.
Foxconn, Apple’s primary assembly partner in India, recently gained approval from the Indian government to establish a semiconductor manufacturing facility in a joint venture with HCL Group.
For decades, Apple has developed its supply chain in China, but has been exploring other nations like Vietnam and India to broaden its manufacturing capabilities.
However, experts largely agree that relocating iPhone production to the U.S. would be quite improbable due to the retail price of the final product. Various assessments suggest the cost of an iPhone would range between $1,500 to $3,500 if it were manufactured in the U.S.
Currently, Apple produces a very limited number of products in the U.S., with the Mac Pro being the only notable item made domestically. In February, it announced plans to open a manufacturing facility in Texas to create servers for Apple Intelligence, its AI system.
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