U.S. President Donald Trump on Thursday took aim at Apple’s expansion of manufacturing in India, emphatically telling CEO Tim Cook that he did not want the tech giant to build its products outside the United States. Speaking to a gathering of business executives in Doha, Qatar, Trump framed his objection as a matter of fairness to American workers and to the long-standing commitments he says Apple made when it pledged a \$500 billion investment in the U.S.

“I had a little problem with Tim Cook yesterday,” Trump told attendees. “I said, ‘My friend, I treated you very good. You’re coming here with \$500 billion, but now I hear you’re building all over India. I don’t want you building in India.’” The president stressed that Apple had benefited from years of favorable treatment in the U.S., including support for its manufacturing footprint in China, and argued that the company should reciprocate by boosting domestic production.

Apple has steadily increased output at two major Indian plants operated by its primary assembler, Foxconn, with the goal of manufacturing roughly a quarter of its global iPhone volume in India over the next few years. That expansion has been driven by the company’s desire to diversify its supply chain, lessen reliance on China’s vast assembly ecosystem and mitigate risks posed by geopolitical tensions and potential tariffs. India has also offered incentives—such as tax breaks and subsidized land—to attract Apple’s manufacturing partners, making it financially attractive to shift production there.

Trump dismissed those incentives as irrelevant in the face of his administration’s priorities. “We’re not interested in you building in India,” he said, “India can take care of themselves. We want you to build here.” He went on to hint at new measures to spur onshore production, saying Apple would be “upping” its investment in American facilities, though he did not provide specifics on potential incentives or policy tools that might encourage such a pivot.

The president’s comments come amid broader negotiations with India over trade and tariffs. Earlier this month, Trump announced a temporary pause in reciprocal tariff hikes on Indian imports, setting a 90-day window for talks aimed at reducing barriers on both sides. Trump noted that India, which applies some of the world’s highest import duties, had offered the U.S. a deal with zero tariffs on a significant share of products—a concession he contrasted sharply with what he viewed as Apple’s misplaced focus on India over America.

In parallel with its India push, Apple has begun to ramp up limited manufacturing in the U.S. beyond its longstanding Mac Pro assembly facility in Texas. In February, the company revealed plans for a new plant in the same state to produce servers for its burgeoning AI business, Apple Intelligence. Those moves have been small in scale compared to its global footprint, but they underscore the challenges and higher labor costs of domestic assembly: estimates indicate that making iPhones in the U.S. could add between $1,500 and $3,500 to the retail price of each device.

Industry experts say that, despite Trump’s entreaties, a large-scale repatriation of iPhone assembly to America is unlikely. The United States lacks the dense supplier network and scale efficiencies of China or India, where components—from printed circuit boards to casings—can be sourced, assembled and shipped at competitive prices. Workers in China’s Guangdong province have decades of specialized experience, while India’s low-cost labor and improving logistics have proven a viable, cost-effective alternative.

Still, Trump’s public admonishment of Apple reflects a broader political calculus. With the 2024 presidential election looming, he is keen to showcase his commitment to domestic job creation and to underscore the potential economic benefits of his “America First” trade policies. By singling out a high-profile company like Apple, he sends a signal to other multinationals that shifting production abroad could carry reputational and perhaps regulatory consequences.

Apple’s supply-chain diversification has not been limited to India. In recent years, the company has quietly increased sourcing of components from Vietnam, Malaysia and Thailand, and has explored assembly opportunities in Mexico. Those moves aim to create a more resilient manufacturing network capable of weathering future disruptions, whether from pandemics, political disputes, or natural disasters.

In India, Foxconn’s two plants have already produced billions of dollars’ worth of iPhones, and Apple’s other major supplier, Wistron, operates an additional facility in the southern state of Karnataka. The Indian government recently approved Foxconn’s plan to build a semiconductor packaging plant in partnership with HCL Technologies, signaling New Delhi’s eagerness to nurture a homegrown microelectronics industry. Yet the pace of local component manufacturing remains slow: most chips, memories and sensors still arrive from East Asia, limiting the extent to which assembly in India truly diversifies Apple’s upstream supply chain.

Trump’s challenge to Apple dovetails with his administration’s efforts to reshuffle global trade relationships. He has repeatedly questioned why American companies invest heavily overseas, arguing that onshoring production strengthens national security, reduces trade deficits and supports higher-wage jobs. In April, he imposed a 26 percent reciprocal tariff on a broad range of Indian goods, though he temporarily lowered it until July to facilitate negotiations. He suggests that Apple’s shift to India was a betrayal of the U.S. generosity that helped establish its mass-market dominance.

From Apple’s perspective, though, the decision to expand in India is less a rebuke of the U.S. than a pragmatic response to evolving market realities. China still assembles the lion’s share of iPhones, but Indian demand is surging: local smartphone sales have been rising at double-digit rates, fueled by a growing middle class and expanding wireless connectivity. By deepening its presence in India, Apple not only hedges geopolitical risk but also positions itself closer to one of its fastest-growing markets.

Moreover, global chip shortages and rising freight costs have underscored the vulnerability of overly concentrated supply chains. Apple executives and board members have cited the need to spread production across multiple regions to ensure business continuity. India, with its rapidly improving infrastructure, large workforce and welcoming government incentives, has emerged as a logical complement to Apple’s China-centric model.

Trump’s comments have sparked reactions on both sides of the Pacific. In India, government officials and industry advocates have welcomed Apple’s investments as validation of the country’s manufacturing potential. They point to improvements in logistics, a robust domestic tech ecosystem and targeted policy tools such as the Production Linked Incentive scheme, which offers subsidies for electronics assembly. While New Delhi remains sensitive to U.S. pressure, it has also sought to use Apple’s presence to spur broader upgrades in local component manufacturing and skill development.

In Washington, some lawmakers applaud the president’s stance, arguing that Apple’s success depends in part on the U.S.-sponsored technological infrastructure and legal protections that underpin its global brand. They have introduced proposals to incentivize domestic high-tech manufacturing through tax credits, grants and streamlined permitting. However, others caution against overly aggressive demands that could backfire, noting that punitive pressure on Apple might discourage other firms from significant U.S. investments.

As Trump presses his case, Apple faces a choice between political optics and operational pragmatism. The company’s publicly stated strategy emphasizes diversification, resilience and local market responsiveness. Shifting a major share of production back to the U.S. would require not only massive capital outlays but also a transformation of global supplier networks—an endeavor that could take years to achieve and substantially raise consumer prices.

For now, Apple remains focused on executing its plans in India and other emerging hubs. Whether it will accede to Trump’s urging to “build here” en masse is far from certain. What is clear is that, in the era of economic nationalism and geopolitically charged trade policy, corporate decisions about where to manufacture have become statements of political and strategic weight—decisions that reverberate far beyond factory floors.

(Adapted from BusinessInsider.com)