In a striking rebuke that could send tremors across global supply chains, U.S. President Donald Trump publicly criticized Apple CEO Tim Cook over the tech giant’s reported plan to move assembly of U.S.-bound iPhones from China to India. Speaking from Qatar, Trump rejected Apple’s India move and showed his frustration saying:

You’re coming here with $500 billion but now you’re building all over India. I don’t want you building in India.”

The statement reveals the increasing strain between economic nationalism and globalized manufacturing and signals possible disruption for Apple’s pricing, production strategy, and India’s ambitions as a manufacturing superpower.

Apple’s India Bet: A Strategic Shift

Apple has been quietly expanding its production footprint in India, especially in response to U.S.-China trade tensions. In March, Foxconn and Tata — Apple’s primary suppliers in India — shipped nearly $2 billion worth of iPhones to the U.S., marking an all-time high.

This surge is not coincidental. It aligns with Apple’s broader decoupling strategy from China, driven by tariff threats, rising labor costs, and geopolitical uncertainty. India, under Prime Minister Narendra Modi’s “Make in India” initiative, has actively courted global manufacturers with incentives, streamlined policies, and tariff relaxations.

Trump Rejects Apple’s India Move: Domestic Pressure vs. Global Efficiency

Trump’s warning to Apple demanding it shift manufacturing back to U.S. soil is as political as it is economic. He referenced Apple’s prior pledge to invest $500 billion in the U.S. and questioned the company’s motives for expanding Indian operations.

“We’ve treated you really good,” he said, referring to Apple’s past operations in China.

We’ve put up with all the plants you’ve built in China for years. Now you’ve got to build for us.”

But here’s the catch, building iPhones in the U.S. is logistically and financially unviable. According to Wedbush Securities, the cost of assembling iPhones domestically would triple retail prices, making even a base model potentially exceed $3,000. The U.S. lacks both the skilled labor and supply chain depth to support large-scale smartphone assembly.

Despite Trump’s claims that Apple will “up production in the U.S.,” no credible evidence has emerged to suggest such a move is underway or even feasible.

Trump Rejects Apple’s India Move: What This Means for Apple and iPhone Prices

Trump’s pressure adds risk to Apple’s carefully calibrated global operations. If forced to localize manufacturing in the U.S., Apple would face soaring production costs, reduced profit margins, and higher iPhone prices for U.S. consumers. None of these options align with Apple’s brand ethos or market strategy. On the other hand, should Apple resist, it may risk being targeted by future tariffs or regulatory hurdles under a Trump-led administration.

There’s also a timing angle: with the iPhone 17 expected in September, any disruption in the production pipeline, especially for U.S.-bound units could delay launches, restrict supply, or inflate prices.

Trade Deals, Tariffs, and Tech Tensions

Ironically, Trump’s fiery remarks only underline India’s growing importance in the global electronics supply chain. Under Prime Minister Narendra Modi’s “Make in India” campaign, the country has attracted giants like Apple with tax incentives, infrastructure upgrades, and workforce readiness.

India is also playing its cards diplomatically. “It is very hard to sell in India,” Trump noted, hinting at the trade imbalance. “They are offering us a deal where basically they are willing to literally charge us no tariffs.”

This zero-tariff offer reflects India’s urgency to secure a broader trade deal with the U.S., especially amid the 90-day pause on tariff hikes announced by Trump in April. New Delhi is trying to win over Washington by creating a low-barrier market for American products. But Trump’s unapologetically rigid “America First” stance and his direct message to Apple, “We want you to build here,” suggest that these overtures may fall flat. For India, this could mean that Apple and potentially other multinationals will be forced to tone down their investment plans in the country, especially if U.S. firms fear political backlash.

Moreover, Trump’s signal to Apple doesn’t just affect Cupertino. His comments send a clear warning to other global firms, especially those in electronics, semiconductors, and EV supply chains, that shifting production from China to India or Southeast Asia might not shield them from American political pressure. The implication is stark: building outside the U.S., even in “friendly” countries, may no longer be safe from scrutiny.

Apple’s Supply Chain Becomes a Global Flashpoint

As Trump pushes for a “Made in America” revival, Apple finds itself caught in the crossfire of economic populism and operational pragmatism. While India continues its ascent as a manufacturing hub, U.S. consumers may ultimately bear the cost, literally, of any forced shift in Apple’s production plans.