Trump doesn’t want Apple to invest in India – What happened?

In a recent business summit in Doha, President Donald Trump disclosed a direct conversation with Apple CEO Tim Cook, urging the tech giant to halt its manufacturing expansion in India and instead bolster production within the United States. Trump recounted telling Cook, “I don’t want you building in India; they can take care of themselves,” emphasizing his preference for domestic manufacturing over overseas investments.

“I had a little problem with Tim Cook yesterday,” said Trump, speaking in Qatar on Thursday. Referring to Apple’s recent $500bn (£375bn) investment promise in the US.

“I said to him: ‘Tim, you’re my friend. You’re coming here with 500bn but now you’re building all over India. I don’t want you building in India.’”

This exchange coincides with ongoing trade negotiations between the U.S. and India. Trump claimed that India has offered a trade deal proposing “no tariffs” on American goods, aiming to resolve longstanding trade imbalances . However, Indian officials have not confirmed this offer, and some analysts suggest that while India may reduce tariffs on certain goods, a blanket zero-tariff agreement is unlikely .

Apple’s strategic shift to diversify its manufacturing base has seen a significant increase in iPhone production in India. In March, Apple’s suppliers Foxconn and Tata exported nearly $2 billion worth of iPhones to the U.S., marking a record high . This move aims to mitigate risks associated with over-reliance on China, especially amid U.S.-China trade tensions and supply chain disruptions .

The current geopolitical landscape between US, Europe and China further complicates these developments. More recently, after a week long mini war between India and Pakistan, a ceasefire was negotiated between the two countries. Trump asserted that his administration played a crucial role in brokering peace through trade incentives . India, however, has officially denied any foreign mediation in the ceasefire, emphasizing that matters related to Jammu and Kashmir are to be resolved bilaterally.

This divergence in narratives has led to speculation that Trump’s comments about Apple and India may be a response to India’s rejection of U.S. involvement in its regional affairs. By discouraging American companies from investing in India, Trump could be signaling dissatisfaction with India’s stance on the ceasefire and its broader strategic autonomy.

Moreover, China’s role in the region adds another layer of complexity. Reports suggest that China has been leveraging the India-Pakistan conflict to gather intelligence and assert its influence.

Trump’s indirect criticism of Apple’s manufacturing shift to India appears to be influenced by a confluence of trade negotiations, geopolitical tensions, and concerns over strategic alignments. As the U.S. navigates its relationships with India and China, corporate decisions by companies like Apple become entangled in broader political dynamics.

Uncertain times lay ahead for the Modi administration in India which was hoping to leverage Apple’s empowering shift to the nation as a morale booster and a way to counter China’s manufacturing hegemony as an alternative.