Apple Reaffirms India Manufacturing Plans Despite Trump’s Resistance
Just hours after US President Donald Trump voiced opposition to Apple’s manufacturing activities in India, the tech giant reassured the Indian government that it remains committed to the country as a core part of its global production strategy.
According to reports by Press Trust of India (PTI), Apple executives conveyed to Indian officials that their investment roadmap in the country remains steady.
- The executives emphasized that India would continue to serve as a key manufacturing base.
- Sources familiar with the matter noted that Apple reiterated its long-term view of India as a major operational hub.
Apple’s Strategic Shift Amid Global Tensions
During Apple’s recent post-earnings call, CEO Tim Cook indicated a strategic realignment of its global supply chain, prompted by ongoing US-China trade tensions.
- Apple plans to move iPhone assembly lines bound for the US from China to India.
- Meanwhile, production of iPads, Macs, Apple Watches, and AirPods is being reallocated to Vietnam, indicating a broader diversification strategy.
This shift reflects Apple’s effort to mitigate risks associated with geopolitical instability, particularly between Washington and Beijing.
- The company aims to reduce dependency on any single nation, especially amid fluctuating tariffs and political uncertainties.
Temporary Easing of US-China Tariffs
Earlier this week, the US and China reached a tentative trade truce, resulting in reduced tariffs on imports.
- The US cut tariffs on Chinese goods from 145% to 30%, while China slashed duties on US imports from 125% to 10%.
- This easing of trade barriers has temporarily stabilized global supply chain costs, but strategic shifts by companies like Apple appear to be continuing regardless.
Trump Criticizes Apple’s India Focus
Despite improved trade ties with China, President Trump has now turned his attention to Apple’s operations in India.
- He expressed disapproval during a recent interaction, criticizing Apple’s plans to expand in one of the “highest tariff nations in the world.”
- Trump reportedly told Apple CEO Tim Cook, “I don’t want you building in India,” citing concerns over the difficulty of selling American products in the Indian market.
India-US Trade Negotiations Continue
The Trump administration has also claimed that India proposed zero tariffs on American goods as part of ongoing trade negotiations.
- However, India’s external affairs minister S Jaishankar quickly refuted this statement, stressing that “nothing is decided till everything is.”
- This underscores the sensitive and evolving nature of bilateral trade talks between the two nations.
In conclusion, while the US-India trade landscape remains uncertain, Apple has firmly signaled its unwavering commitment to India as a manufacturing hub, suggesting that its decisions are driven by long-term supply chain resilience, not short-term political fluctuations.
