Apple’s India Plans Remain Unchanged Despite Trump’s Objection

Hours after US president Donald Trump said he doesn’t want Apple to manufacture in India, the iPhone maker has reassured the Indian government that the country would continue to remain its manufacturing hub.

Citing government sources, PTI said Apple executives told Indian officials that the company’s investment plans for India remain intact. 

“Apple has said that its investment plans in India are intact and it proposes to continue to have India as a major manufacturing base for its products,” a source was quoted as saying. 

In its post-earnings call earlier this month, Apple CEO Tim Cook said that the company plans to shift its assembly units for iPhone sold in the US to India from China to India due to the trade war between Washington and Beijing. Besides, he said that Vietnam would produce iPad, Mac, Apple Watch and AirPods for the company. 

However, the tariff situation has changed since then. Earlier this week, the US and China reached a temporary agreement. Following this, the US has cut tariffs on Chinese goods to 30% from 145% earlier, while China has cut duties on US imports to 10% from 125% earlier.

With the tariff war seemingly out of the way now, Trump seems to have shifted his focus on India. 

“I had a little problem with Tim Cook yesterday. I said to him, my friend, I am treating you very good. You are coming up with $500 Bn but now I hear you are building all over India. I don’t want you building in India … because India is one of the highest tariff nations in the world so it is very hard to sell in India,” he said earlier in the day. 

Notably, India and the US are currently involved in negotiations for a trade agreement. 

Trump also said today that India has proposed zero tariffs on American goods as part of the negotiations. 

However, Indian external affairs minister S Jaishankar rebutted the claim saying talks are still going on and “nothing is decided till everything is”.