Trump’s Criticism of Apple’s India Plans Raises Trade Tensions

Trump‘s Criticism of Apple‘s India Plans Raises Trade Tensions

TONOY CHAKRABORTY

In a striking escalation of economic rhetoric, U.S. President Donald Trump publicly criticized Apple CEO Tim Cook for the tech giant’s expanding manufacturing operations in India, declaring during a business forum in Doha that the U.S. is “not interested” in supporting such ventures.

The remarks, delivered with Trump’s trademark candor, have raised concerns about U.S.-India economic ties, particularly as Indian Prime Minister Narendra Modi navigates a complex web of global diplomacy involving the United States, China, and Russia, with Russian President Vladimir Putin’s upcoming visit to India adding further geopolitical weight.

Speaking in Qatar, Trump recounted a tense exchange with Cook, describing it as a “little problem.” He revealed his directive to the Apple chief: “I said to him, my friend, I am treating you very good… but now I hear you’re building all over India. I don’t want you building in India.”

The comments align with Trump’s “America First” agenda, which prioritizes domestic manufacturing and views overseas investments—especially in high-tariff nations like India—with suspicion. Trump singled out India’s trade policies, calling it “one of the highest tariff barriers in the world,” a point of contention despite recent U.S.-India agreements to resolve trade disputes and aim for $500 billion in bilateral trade by 2030.

This rebuke contrasts sharply with Trump’s earlier praise for Apple’s U.S. production commitments in 2024 and underscores tensions in his relationship with Modi, despite their outwardly warm rapport. During Modi’s February 2025 visit to Washington, the two leaders shared a “bear hug” and announced deals on defense, energy, and trade, including U.S. oil and gas exports to India and the extradition of Mumbai terror attack suspect Tahawwur Rana.

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However, Trump’s tariff threats and criticism of India’s trade barriers reveal underlying frictions, with the president warning that India “won’t be spared” from reciprocal tariffs set to take effect in April 2025.

Modi’s government is maneuvering through a delicate geopolitical landscape. The prime minister has cultivated a strong personal bond with Trump, often described as a “bromance,” rooted in shared nationalist rhetoric and strategic alignment against China’s regional influence. Their February meeting emphasized deepened security cooperation in the Indo-Pacific, a veiled counter to Beijing, and advanced defense deals, including F-35 jet sales to India.

Yet, Trump’s outreach to Chinese President Xi Jinping, including plans for denuclearization talks, has raised concerns in New Delhi about a potential U.S.-China détente that could sideline India. Modi has expressed cautious optimism about U.S.-China relations, noting in a March 2025 podcast that he hopes “China, India, Russia, and the U.S. can get along,” while prioritizing India’s national interests.

Complicating matters, Russian President Vladimir Putin is set to visit India in 2025, following Modi’s invitation, marking his first trip since the Russia-Ukraine conflict began in 2022. Modi has positioned India as a proponent of peace in the Ukraine conflict, clarifying during his U.S. visit that “India is not neutral” but stands “on the side of peace.”

This stance aligns with Trump’s push to end the war, with the U.S. president echoing Russian talking points about Ukraine’s NATO aspirations as a trigger for the conflict. Putin’s visit, likely tied to the India-Russia annual summit and the Quad summit hosted by India, underscores New Delhi’s “multialignment” strategy, maintaining ties with Moscow while deepening U.S. partnerships. India’s increased Russian oil imports since 2022, criticized in the West, further highlight this balancing act, with a potential U.S.-Russia rapprochement possibly easing economic pressures on New Delhi.

Trump’s comments come as India’s electronics sector experiences unprecedented growth, driven by government incentives and foreign investment. Apple has scaled up iPhone production by nearly 60% over the past year, assembling $22 billion worth of devices, with suppliers like Foxconn and Tata Group expanding in Tamil Nadu and Karnataka. The Modi government’s Production-Linked Incentive (PLI) scheme and tariff exemptions have positioned India as an alternative to China for global supply chains, a strategy Trump’s remarks directly challenge.

Indian officials have downplayed the impact, with a senior source telling CNBC-TV18 that Apple reaffirmed its “unwavering commitment” to India. Analysts agree, with Neil Shah of Counterpoint Research noting that Apple’s goal to produce 25% of its iPhones in India by 2025 is driven by supply chain diversification, not political rhetoric. “This is about economics, not geopolitics,” Shah said.

The episode highlights the collision of corporate strategies with geopolitical agendas. Trump’s push to reshore manufacturing conflicts with Apple’s need to mitigate risks amid U.S.-China tensions, while his tariff threats test the U.S.-India “mega-partnership” Modi championed in February.

For India, a slowdown in foreign investment could undermine the “Make in India” initiative, despite its vast consumer market and low labor costs. Modi’s diplomatic engagements—with Trump, Putin, and Xi, following a 2024 border pact with China—reflect India’s effort to maintain strategic flexibility in a volatile global order.

Beijing, wary of U.S.-India defense cooperation, has urged that bilateral ties not target China, with Foreign Ministry spokesperson Guo Jiakun emphasizing Asia-Pacific stability. Meanwhile, Trump’s willingness to mediate India-China border disputes, offered during Modi’s visit, was met with India’s preference for bilateral talks, signaling New Delhi’s cautious approach.

While Trump’s rhetoric may unsettle diplomatic and corporate circles, immediate policy shifts seem unlikely. Apple’s silence suggests its India plans remain intact, and Modi’s proactive trade concessions, including tariff reductions on U.S. goods, aim to preempt Trump’s tariffs. Putin’s visit will likely reinforce India’s role as a mediator in global conflicts, while its Quad leadership strengthens ties with the U.S., Japan, and Australia.

As one industry insider noted, “Presidents and prime ministers set the tone, but business and diplomacy follow their own logic.” For now, India’s manufacturing ambitions, Apple’s investments, and Modi’s global balancing act appear resilient, navigating the choppy waters of Trump’s economic nationalism and an evolving geopolitical chessboard.

16-05-2025

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