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Trump Urges Apple to Halt iPhone Production Shift to India, Pushes for U.S. Manufacturing

by Team Lumida
May 15, 2025
in Markets
Reading Time: 4 mins read
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Can Apple’s Vision Pro Bounce Back with a Budget-Friendly Model?

"Apple Vision Pro on display" by Seasider53 is licensed under CC BY 4.0

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Key Takeaways:

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  • President Trump has asked Apple CEO Tim Cook to stop expanding iPhone production in India, urging the company to increase manufacturing in the U.S. instead.
  • Apple has been diversifying its production away from China, with plans to produce most U.S.-bound iPhones in India by the end of 2026.
  • India-made iPhone production surged 60% in the past year, reaching $22 billion, with key suppliers like Foxconn and Tata Group expanding operations in southern India.
  • Trump’s comments come as India offers to lower tariffs on U.S. goods, seeking a broader trade agreement.

What Happened?

During a state visit to Qatar, President Trump revealed that he had urged Apple CEO Tim Cook to halt the company’s plans to expand iPhone production in India. Trump criticized India’s high tariff barriers and emphasized the need for Apple to increase its manufacturing footprint in the U.S.

Apple has been shifting production away from China due to geopolitical tensions, tariffs, and disruptions caused by COVID-19 lockdowns. The company has significantly ramped up its India-based production, assembling $22 billion worth of iPhones in the past year, a 60% increase from the previous year.

India has become a key manufacturing hub for Apple, with suppliers like Foxconn and Tata Group expanding their operations. However, Trump’s comments could complicate Apple’s strategy to diversify its supply chain and reduce reliance on China.


Why It Matters?

Trump’s push for Apple to prioritize U.S. manufacturing highlights the ongoing tension between economic nationalism and global supply chain diversification. While Apple’s shift to India mitigates risks associated with China, it also reflects the challenges of balancing cost efficiency with political pressures.

India’s offer to lower tariffs on U.S. goods could open new trade opportunities, but Trump’s stance may strain negotiations. For Apple, the pressure to increase U.S. production could lead to higher costs, potentially impacting its pricing and profitability.


What’s Next?

Apple will need to navigate Trump’s demands while maintaining its long-term strategy to diversify production. Investors should monitor how this political pressure impacts Apple’s supply chain decisions and its relationships with key manufacturing partners in India.

Additionally, the broader U.S.-India trade negotiations could influence Apple’s ability to expand in India, especially if tariff reductions are tied to increased U.S. manufacturing commitments. The outcome of these discussions will likely shape Apple’s global production strategy in the coming years.

Source
Tags: Apple
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© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018