While in the Gulf recently, ex-President Donald Trump criticized Apple CEO Tim Cook and asked Apple to produce its devices in the U.S. rather than India. Many economies are looking for new opportunities as trade tensions and tariffs on Chinese items cause them to re-evaluate how they manufacture products.
Trump to Cook: “Build Here, Not in India”
The president was frank about his interaction with Tim Cook.
“I had a little problem with Tim Cook,” he said. “I told him, we treated you really good. We put up with all the plants that you built in China for years now. But we’re not interested in you building in India — we want you to build here.”
According to Trump, Apple is expected to boost its manufacturing presence in the U.S. following this discussion.
Apple Faces Global Pressure Over Manufacturing Base
These comments were made just after both nations agreed to not raise new tariffs on each other for the next 90 days to help ease the impact on world markets. Yet, Apple is unsure of its next steps, according to the poll. In his remarks, Cook acknowledged that the company could not pinpoint how much the tariffs would cost the company, especially for components that come from China.
Even though Trump is against it, Apple has made it clear that India is its focus for future manufacturing. Apple CEO Cook mentioned during the company’s May earnings call that iPhones sold in the U.S. were increasingly being made in India. The move is designed to expand the company’s sourcing outside China, as it has been affected by the U.S. government’s tariffs.
$900 Million Hit from Tariffs
Though iPhones are not charged with the hefty tariffs currently, Apple has estimated it will lose $900 million this quarter due to higher duties on various raw materials. While the initial impact was not huge, Cook stated that things might change as time goes on.
India has also expressed disapproval over the U.S. tariffs. Indian officials signaled on Tuesday that they would retaliate if the raised duties on steel and aluminum affected their country. The foreign minister made it clear that both countries need to benefit equally from the outcomes of the ongoing trade discussions with the U.S.
Apple’s U.S. Investment Still On Track
Despite the tensions, Apple reiterated its commitment to the U.S. economy, pledging over $500 billion in investments and the creation of 20,000 American jobs over the next four years.
“Apple’s already in for $500 billion, but they’re going to be upping their production, so it’ll be great,” Trump said during his stop in Qatar.
Whether Apple fully redirects its manufacturing as Trump wishes remains uncertain, but the pressure is mounting.
