US President Donald Trump has dropped another bombshell. He has strongly said that Apple should manufacture iPhones sold in the US locally, not in India or any other country. If this does not happen, then he has threatened to impose a 25% tariff. If Apple takes any steps in this regard, then it can affect India in many ways.
Trump wrote in a post on Truth Social, 'I told Apple's Tim Cook a long time ago that I want their iPhones sold in the US to be made in the US, not in India or anywhere else.' If this does not happen, then Apple will have to pay a minimum tariff of 25% to the US. Trump said this when it was reported that Apple is increasing its production in India. Trump had earlier said that he wants Apple to manufacture in the US. However, ignoring Trump, Apple decided to increase capacity in India.
Apple is eyeing India after the US trade war against major manufacturing hubs like China and Vietnam. The Financial Times reported that the tech giant is considering moving the assembly of all iPhones sold in the US to India by next year. After Trump's comments, reports emerged that Apple's focus on India has not changed.
Apple has made this promise:
Apple executives have assured Indian government officials that the company's investment plans are intact. The country will be a major manufacturing hub for Apple. Cook announced that Apple will source most of the iPhones sold in the US in the June quarter from India, while China will produce most of the devices for other markets amid uncertainty over tariffs. This means that most of the iPhones sold in the US will be made in India. These phones will be made in China for the rest of the world.
Trump wants Apple to create jobs in the US. That is why he wants Apple to make its phones only in the US. Apple currently makes its phones in India and China because it is cheaper. If Apple is forced to make its phones in the US, the iPhone could become more expensive.
What could be the impact on India?
Trump's threat could have a negative impact on India's electronics manufacturing sector, investment and trade. This also reflects the uncertainty of global trade policy. It could have a number of potential impacts on India.
Apple is increasing its production in India to reduce its dependence on China. Trump's threat could affect Apple's strategy. The Indian government is promoting electronics manufacturing under the 'Make in India' initiative. Expanding Apple's production in India is an important step towards this initiative. Trump's tariffs could be a blow to India's goal.
Investments made by Apple and its suppliers in India create employment opportunities in the country. These investments could be affected by the tariffs. This could have a negative impact on job creation. Such a situation could also create tension in trade relations between India and the US. India wants the US to consider it as a convenient country to do business. Such things can damage the environment. Apple's supply chain is spread across the globe. Trump's tariffs could disrupt this supply chain, which could hurt not only Apple but also other companies and consumers.
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