Trump Draws the Line on Apple and Indian Manufacturing US President Donald Trump has stirred a new wave of speculation in global trade circles by asserting that he has asked Apple CEO Tim Cook not to expand the tech giant’s manufacturing footprint in India—unless it’s intended solely for the Indian market. Speaking at a business roundtable during his visit to Doha, Trump claimed that India has offered to eliminate tariffs on American goods in an effort to forge a fresh trade agreement with Washington. “It’s very hard to sell into India… they’re willing to literally charge us no tariff,” Trump was quoted as saying. This remark, unacknowledged so far by New Delhi, arrives amid sensitive negotiations between the two nations and adds another layer of complexity to the India-US trade narrative. Why Trump’s Comments Matter Trump’s remarks carry significance on several fronts—economically, diplomatically, and strategically. For one, the timing is crucial. Apple, facing mounting uncertainty in China, has accelerated plans to shift iPhone production to India, with intentions to manufacture a quarter of its global iPhones there within the next few years. Cook confirmed that a majority of iPhones sold in the US this quarter will be assembled in India—a first for the company. But Trump’s comment appears to serve a dual purpose:

• Political signaling: By discouraging Apple from boosting Indian operations, Trump positions himself as defending US jobs and manufacturing interests.
• Trade leverage: The zero-tariff claim puts public pressure on India to make tangible concessions and could strengthen Trump’s negotiating hand.

This comes in the wake of a 26% reciprocal tariff the Trump administration imposed on Indian imports, to which India responded with threats of retaliatory duties—a tit-for-tat escalation rooted in Washington’s tariffs on Indian steel and aluminum exports. The Apple Factor and Shifting Supply Chains Trump’s direct messaging to Tim Cook also spotlights Apple’s strategic pivot to India, a move catalyzed by a mix of tariff concerns, geopolitical tensions with China, and economic incentives from New Delhi. India’s government, through its Production-Linked Incentive (PLI) scheme, has already disbursed nearly $1 billion between 2022 and 2025 to encourage local electronics manufacturing. A whopping 75% of that went to Apple’s contract manufacturers—Foxconn, Tata Electronics, and Pegatron (now under Tata’s control). These manufacturers received over ₹6,600 crore in subsidies in just three years. Even as US-China trade tensions ease, India’s position as a preferred destination for manufacturing isn’t solely dependent on global disputes. The Modi government’s ambition to turn India into a global electronics hub has made it a lucrative long-term bet for companies like Apple. Yet, Trump’s remarks show how vulnerable these strategies remain to external political shifts. India’s ‘Zero Tariff’ Offer: Strategic Gamble or Diplomatic Bluff? Trump’s assertion that India offered a “zero tariff” deal on American imports has not been confirmed by Indian officials. If true, it suggests a radical departure from New Delhi’s otherwise protectionist trade posture. Traditionally, India has defended higher tariffs as a means of safeguarding its nascent industries and maintaining strategic economic autonomy. While India’s trade bodies and ministries have remained silent on the claim, sources close to ongoing trade talks suggest a more nuanced picture. New Delhi might consider targeted tariff relaxations—possibly in tech, energy, or defense—in exchange for broader market access or exemptions from US duties. Meanwhile, India has notified the World Trade Organisation (WTO) of its intention to suspend trade concessions to the US, hinting at potential retaliatory tariffs if negotiations sour. This follows a pattern established in 2019, when India imposed tariffs on 28 US items ranging from almonds to chemicals. What Lies Ahead for India? Donald Trump’s latest remarks are part campaign rhetoric, part strategic maneuvering. Yet they underscore an important reality—India remains a critical player in the recalibration of global supply chains, especially in the post-pandemic and post-China-dominant world order. For India, the immediate challenge is balancing its aspirations to be a manufacturing powerhouse with the diplomatic tightrope of trade negotiations. New Delhi must weigh the cost of zero tariffs—if ever seriously on the table—against its broader economic goals, including job creation, fiscal health, and industrial growth. Going forward, India would do well to clarify its stance, counter speculative narratives, and build consensus internally on trade policy. Transparent communication, strategic concessions in select sectors, and firm negotiation on core interests can help prevent misunderstandings and convert Trump’s challenge into opportunity. The road to a balanced India-US trade deal is still open—but it demands strategic patience, economic pragmatism, and deft diplomacy.   (With agency inputs)