As you might expect, former President Donald Trump is not happy about this. He is critical of Apple’s recent decision to relocate a significant portion of its iPhone production to India. Throughout his week of international business in the Middle East, Trump took to the social media platform Truth Social to air his grievances. In the process, he defined what success looks like for the tech giant.
In his post, Trump made it clear that he has previously informed Apple CEO Tim Cook about his expectations regarding manufacturing practices. He stated, “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.” This strong stance reflects Trump’s ongoing commitment to U.S. manufacturing and his administration’s efforts to support domestic production.
Trump’s warning was a damn good one. According to him, Apple might have to pay significant fines if it doesn’t produce the iPhones that it sells in the U.S. on American soil. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank you for your attention to this matter!” While he remained in his position, foreshadowing at least an ideological change in trade policy towards a softer touch on foreign manufacturing,
Under these and other moves as part of his overall strategy, that has left Trump to go after companies trying to avoid U.S.-imposed tariffs even harder. Most recently, he targeted Walmart. Specifically, he called on the retail giant to “EAT THE TARIFFS” and eat the costs rather than increase prices on consumers. This angle really highlights Trump’s commitment to fighting for American workers and industries against increasing global competition.
In fact, Apple’s manufacturing partner Foxconn recently made headlines with the announcement of a major $1.5 billion investment in its India operations. This relocation fits into the company’s larger plan to move more of its production out of China and thereby avoid U.S. tariffs. Tim Cook acknowledged this shift during an earnings call, stating that the majority of iPhones sold in the U.S. “will have India as their country of origin.”
While that’s what Trump and Cook may be discussing on Tuesday, specifics from that conversation are, as of this writing, unknown. For the tech industry, the meeting comes at a critical juncture. Widespread supply chain challenges plus current geopolitical tensions are driving today’s manufacturing decisions in real time.
CNN stuck with the lead on the terrible impact Apple’s lack of U.S. manufacturing means for U.S.-China trade relations. Dominic-Madori is a senior venture capital and startup reporter with TechCrunch based in New York City. She’s written a lot about the impacts of this issue, including the negative effects it may have on companies who increase consumer prices as a result of tariffs.
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