The trade and political relationship between India and the United States may be entering a complex phase following recent statements by former US President Donald Trump. In a direct message to Apple CEO Tim Cook, Trump said he does not support Apple’s increased manufacturing activities in India. This unexpected disapproval comes at a time when Apple has significantly expanded its production operations in India, with iPhone production reaching a staggering $22 billion by March 2025—a 60% increase from the previous year. The shift marks a notable milestone in Apple’s efforts to diversify its manufacturing base beyond China.
Over the past several years, Apple has been gradually relocating portions of its supply chain away from China. This strategy gained momentum following prolonged COVID-19 lockdowns in Chinese cities, particularly at major production hubs like Foxconn’s Zhengzhou facility, often referred to as “iPhone City.” These disruptions caused severe delays and forced Apple to reconsider the risks of overreliance on a single country for manufacturing. Compounding this were the tariffs imposed during Trump’s presidency, which sparked a broader US-China trade war and triggered a wave of supply chain recalibrations among multinational corporations.
India emerged as a key beneficiary of this shift. Under Prime Minister Narendra Modi’s “Make in India” campaign, the Indian government rolled out generous incentives to attract global manufacturers. Apple and its suppliers, such as Foxconn and Pegatron, responded by ramping up investments in Indian assembly plants. The country offers a large, cost-effective labour pool and a growing domestic market, making it an attractive alternative to China. Moreover, India’s democratic governance and its strategic alignment with the US have made it a logical partner in diversifying global tech supply chains.
Trump’s latest comments, however, introduce a potential roadblock in this trajectory. His opposition to Apple manufacturing in India aligns with his long-standing “America First” policy, which aims to bring manufacturing back to the United States. By discouraging companies from producing overseas—even in friendly nations like India—Trump signals a return to protectionist trade rhetoric. While he is not currently in office, his influence on the Republican Party and American public discourse remains significant. If he returns to power or if his views shape the trade agenda of future administrations, US companies may face political or financial disincentives for offshoring production.
This stance, if adopted more broadly by US policymakers, could strain the growing economic ties between India and the US. Trade between the two countries has steadily increased over the past decade, and both sides have expressed ambitions to deepen their economic cooperation. However, the potential imposition of penalties or policy barriers against companies that shift manufacturing to India could erode the trust and investment momentum that has been building.
At the same time, strategic cooperation between India and the US has never been stronger. Both nations share common concerns about China’s growing assertiveness in the Indo-Pacific region. Defence collaborations, joint military exercises, and technology partnerships have all strengthened in recent years. These ties may serve as a stabilising force even if trade frictions rise. However, strategic alliances can be undermined if economic grievances are allowed to fester.
From a corporate perspective, Apple and other tech giants find themselves in a delicate position. On one hand, they must navigate domestic political pressures in the US. On the other hand, they face the operational need to mitigate risks associated with single-country dependence. India presents a compelling case, not just for cost savings, but also for supply chain resilience and market expansion. A hardline political approach from the US could place companies in a difficult position, forcing them to weigh national loyalty against global business strategy.
In conclusion, while India and the US are expected to maintain strong political and strategic relations, the trade relationship may face turbulence if Trump’s protectionist outlook gains traction again. India must continue to engage diplomatically with both sides of the US political spectrum, emphasising the mutual benefits of trade and investment. American businesses, meanwhile, will need to balance geopolitical sensitivities with practical business needs. The world is watching closely as the two largest democracies navigate the future of their economic partnership at the intersection of politics, commerce, and global strategy.