Trump Takes Aim at Apple’s India Plans

• Apple (AAPL) shares fell, hitting an intraday low of $209.54, after President Trump criticized CEO Tim Cook for expanding iPhone production in India, urging the company to prioritize U.S. manufacturing instead.
• Trump highlighted Apple’s $500 billion U.S. investment commitment while noting India’s high tariffs and a temporary 26% reciprocal tariff on Indian goods, lowered until July, amid ongoing trade negotiations.
• Apple’s plan to produce 25% of global iPhones in India aims to reduce reliance on China, where 90% of its smartphones are assembled, but faces pressure from Trump’s push for domestic production.

Apple (AAPL) shares traded lower on Thursday, hitting an intraday low of $209.54, as President Donald Trump publicly criticized CEO Tim Cook for the company’s manufacturing strategy, urging a shift from India to the United States. Trump, speaking about broader U.S.-India trade relations, expressed frustration over Apple’s plan to produce around 25% of global iPhones in India in the coming years, a move aimed at diversifying production away from China, where approximately 90% of its flagship smartphones are currently assembled. The president referenced Apple’s $500 billion U.S. investment commitment announced in February, claiming he had told Cook, “We’re not interested in you building in India, India can take care of themselves … we want you to build here,” while asserting that Apple would be “upping” its U.S. production without providing specifics.

The remarks highlight tensions between Apple’s global supply chain strategy and the Trump administration’s protectionist trade policies, which include a 26% reciprocal tariff on Indian goods, temporarily lowered until July. Trump also noted India’s status as “one of the highest tariff nations in the world,” claiming the country offered a deal to eliminate tariffs for the U.S., though details remain unclear. Apple’s push to expand manufacturing in India aligns with its goal of reducing geopolitical and economic risks tied to its heavy reliance on China, where trade disputes and supply chain disruptions have posed challenges. By investing in India, Apple aims to leverage the country’s growing market and lower production costs, with companies like Foxconn and Pegatron already establishing iPhone assembly plants there.

Trump’s call for increased U.S. production taps into broader political and economic debates about reshoring manufacturing to create jobs and strengthen domestic industries. Apple has made efforts to expand U.S.-based operations, including investments in chip design, data centers, and supplier facilities, as part of its $500 billion commitment. However, scaling iPhone production domestically faces hurdles, including higher labor costs and a lack of the specialized manufacturing ecosystem found in Asia. The stock’s decline reflects investor concerns about potential policy pressures and their impact on Apple’s cost structure and profitability, particularly as the company navigates complex trade dynamics.

The broader context of U.S.-India trade relations adds another layer of complexity. India’s high tariffs have long been a point of contention, and Trump’s reciprocal tariff policy underscores his administration’s focus on balancing trade deficits. The temporary tariff reduction until July suggests ongoing negotiations, but any escalation could affect Apple’s cost calculations for Indian production. For now, Trump’s comments signal heightened scrutiny of Apple’s global strategy, with the administration pushing for domestic manufacturing to align with its economic agenda. As Apple balances these pressures, its stock market performance will likely remain sensitive to developments in trade policy and production decisions, with investors closely monitoring how Cook responds to the administration’s demands.

WallStreetPit does not provide investment advice. All rights reserved.

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