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Trump has long desired that iPhones be manufactured in the U.S., but achieving this goal poses immense logistical challenges, particularly concerning labor costs and supply chain intricacies. Initially, Apple managed to shift much of its iPhone production to India following Trump’s tariffs on China. However, India is now also under threat from potential tariffs, including a 25% general tariff and unspecified levies for Russian crude imports.
Despite previous exemptions for iPhone shipments from punitive tariffs targeting China, the current geopolitical landscape is too unpredictable to establish robust international logistical networks, especially for products as complex as iPhones.
Apple’s latest commitment of $600 billion could be seen as an attempt to secure assurances from the Trump administration. The additional $100 billion in investments is likely intended to win exemptions from any potential tariffs on India.
This significant investment will be announced later today when Trump and Tim Cook meet at the White House. In May, Trump had expressed his dissatisfaction with Apple’s expansion into India during a press conference:
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> “I told Tim Cook we’re not interested in you building [Apple] in India; they can take care of themselves. You up your production here [U.S.].”
