Trump Demands Apple Abandon India: Iphone Prices Could Skyrocket

The demand comes as Apple is actively diversifying its supply chain away from China. The tech giant has dramatically increased its manufacturing presence in India, with output reaching $22 billion in FY2024-25, a 60% increase from the previous year. India-made iPhone exports have surged to $17.4 billion, and the company aims to produce 25% of all iPhones in India by 2028.

Trump referenced ongoing trade tensions with India, pointing to high tariff barriers that make it difficult for American companies to sell products there. These tariffs have long complicated trade relations between the two countries. Recent reports suggest India has offered to lower some tariffs on U.S. goods as part of broader negotiations.

Persistent Indian tariffs create barriers for U.S. businesses despite recent proposals to reduce trade restrictions

Any major shift in Apple’s manufacturing strategy could have significant consequences for consumers. Experts note that moving production from India to the U.S. would likely increase manufacturing costs due to higher labor and operational expenses. These increased costs could potentially be passed on to consumers in the form of higher iPhone prices.

Currently, Apple has minimal iPhone production in the United States, with the majority of assembly taking place overseas. While some Mac computers are produced domestically, iPhones are primarily assembled in Asia. Tim Cook has consistently advocated for a global manufacturing footprint to maintain efficiency. The discussion between Trump and Cook took place during Trump’s state visit to Qatar, highlighting the international implications of U.S. manufacturing policies.

India has become an essential export hub for Apple, shipping $2 billion worth of iPhones to the U.S. in early 2025 alone. Apple’s facilities in India currently produce over 40 million units annually, representing approximately 20% of the company’s total iPhone output. Disrupting these established operations could cause supply chain complications and reduce Apple’s production flexibility.

Trump claims Apple will increase U.S. production following their discussion, though no confirmation from Apple has been reported.