Trump vs Tim Cook: Apple’s India Expansion Sparks Debate on Economic Patriotism

After the recent tariff detente between the US and China, expectations were high for cooling trade tensions in global tech supply chains. Trump's dissatisfaction with Apple's India expansion highlighted a deeper, more unshakeable feeling about "Economic Patriotism," which now directed not just towards China, but at any country that doesn't benefit Americans.

What’s the Buzz

As Tim Cook, CEO of Apple, announced on May 2, 2025, that the majority of iPhones sold in the US during the April to June quarter would be manufactured in India. This move targets to diversify Apple's supply chain while reducing reliance on China at the same time, in the middle of prior trade tensions and tariff uncertainties.

According to the Indian Express recently, on May 15, 2025, speaking at a business roundtable in Doha, Donald Trump said, "I had a little problem with Tim Cook yesterday. I said, 'Tim, you are my friend, I have treated you well, you are coming here (in the US) with a $500-billion announcement, and now I hear you are building all over India. I don't want you building in India. You can build in India if you want to take care of India, because India is one of the highest tariff nations in the world.' So it is very hard to sell in India." In the same conversation, he also claimed, "They (India) have offered us a deal where basically they have agreed to charge us literally no tariffs." 

He continued, "Tim, we are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India. India can take care of itself."

According to an Indian Express report, a senior official said that Apple has communicated to the Indian government that there is no change in the investment plan for India, which the company look at as a crucial demography for expanding its manufacturing footprint. 

Tarun Pathak, research director at Counterpoint, told Bloomberg, "This is a familiar Trump tactic: He wants to push Apple to localise more and build a supply chain in the US, which is not going to happen overnight. Making in the US will also be much more expensive than assembling iPhones in India."

India's Relation With Apple

After the announcement of the Production Linked Incentive (PLI) scheme for smartphone manufacturing by the Indian government in March 2020. Through its contract manufacturers, Apple has been the largest beneficiary of the scheme, it has doubled down on production in India. This scheme subsidises manufacturers depending on the amount of their incremental sales. As of today, Apple produces all models in India, including the higher-end and Pro range for global consumption.

Under this scheme Indian government lays out close to $ 1 billion in the three years from 2022-23 to 2024-25. 

Foxconn, Wistron, and Pegatron, with these three companies, Apple started contract manufacturing here; later, Wistron and Pegatron were acquired by the Tata Group.

According to the New York Post, the Indian government have approved Foxconn, Apple's major supplier and manufacturing partner, to build a $433 million semiconductor plant starting operations no later than 2027.

Conclusion

Due to the government incentives, India successfully appeals as a manufacturing hub in the world. The Indian government is not worried even by the harsh remarks of Donald Trump because it believes that not only Apple but also other companies migrating to India were not only due to the truce between the US and China, but it is because of New Delhi's growing ambition to become a global manufacturing hub for electronics. This steadfast approach highlights Apple's trust in India's capabilities and its pivotal role in the company's global operations.