La Donald Trump's request to Tim Cook, CEO of Apple, so that the technology giant stops the construction and expansion of its plants in India destined for the iPhone production is gaining momentum again. The current US president took advantage of a recent trip to Qatar to once again bring up the debate about where technological products for the US market should be manufactured, emphasizing his desire to boost domestic industry.
What Trump is asking Apple for
Although Apple has been diversifying its supply chain and moving some production out of China for some time, the Trump administration has made clear its interest in having Apple strengthen manufacturing on North American soil, thus reducing dependence on other markets and promoting local job creation. The request was made, as we noted, during an official visit by Trump to Qatar, once again generating intense debate in both the technology sector and in economic and political circles.
Trump has insisted in this way that Apple should not build more plants in India to manufacture iPhones directed at the US, although it allows the company to maintain manufacturing for its own Indian market. The president has publicly argued that he wants to see more investment from Apple in the United States, stressing that moving production would allow for new hiring and strengthen the local economy. Apple, for its part, had previously announced investment plans worth $500.000 billion over the next four years and the commitment to expand its workforce in the United States.
The impact on global iPhone production
iPhone production in India currently accounts for about 20% of Apple's annual total, with more than 40 million devices manufactured each year, mainly at the Foxconn Technology Group and Tata Group facilities in southern China. Apple and its suppliers have increased production capacity in the region over the last year, with new factories and expansions also aimed at the international market. In fact, in the last twelve months, the company assembled iPhones in India for a value close to $22.000 billion, representing an increase of almost 60% compared to the previous year.
The diversification of manufacturing responds, among other reasons, to Apple's intention to minimize the risks associated with trade and tariff tensions between China, India, and the United States. Strict lockdown policies in China and the imposition of tariffs by the Trump administration prompted the brand to explore production alternatives. However, industry experts point out that moving iPhone production to the United States presents significant challenges, especially due to the shortage of specialized talent in electronics engineering and manufacturing and due to the significantly higher costs compared to Asia.
Despite the pressure, Trump's announced intention does not imply that Apple must close its plants in India, as long as production is destined exclusively for local consumption. Trump himself has stated that the company can continue manufacturing in India if it is to supply that market. but not for sale in the United States.
US-India Trade Policy: A Tariff-Free Deal?
Trump has also commented on the tariff negotiations with India, mentioning that the Asian country has proposed eliminate taxes on American products. India has one of the highest tariff barriers in the world, making selling foreign products a considerable challenge, all the more reason for the United States to seek more favorable conditions for its businesses and consumers.
The situation undoubtedly raises important questions for Apple and the technology industry about the viability of moving production to the United States in the short term, due, as we mentioned, to the supply chain complexity and the high level of specialization in the manufacturing and assembly of electronic devices that has historically been concentrated in Asia.
El future of Apple's manufacturing strategy This will largely depend on the evolution of trade relations between the three countries involved and the company's ability to adjust its global supplier network without affecting the availability or price of its products in the most important markets. We'll see how the coming months unfold.