The recent remarks by U.S. President Donald Trump urging Apple to cease iPhone production in India and relocate manufacturing to the United States have introduced complexities into the India-U.S. trade relationship. Despite these comments, the bilateral ties between the two nations remain largely stable, underscored by ongoing trade negotiations and mutual economic interests.
Apple has significantly increased its manufacturing footprint in India, now producing approximately 20% of its global iPhone output. This expansion is part of Apple’s strategy to diversify its supply chain and reduce reliance on China. In response to President Trump’s statements, Apple has reassured the Indian government that there will be “no change” in its investment plans in the country. Analysts suggest that the logistical and financial challenges of shifting large-scale production back to the U.S. make such a move unlikely in the near term.
The U.S. has imposed reciprocal tariffs on Indian goods, citing India’s higher import duties on American products. These tariffs could potentially affect India’s electronics exports, including smartphones and laptops. However, a recent 90-day pause in the implementation of some tariffs offers a window for both countries to negotiate and address trade imbalances. India and the U.S. are actively engaged in discussions to finalise a bilateral trade agreement aimed at doubling their trade volume to $500 billion by 2030. While President Trump’s comments have introduced some uncertainty, both nations continue to pursue avenues for strengthening their economic partnership.
While President Trump’s call for Apple to move production back to the U.S. has stirred discussions, it has not fundamentally altered the trajectory of India-U.S. relations. Both countries appear committed to resolving trade differences through dialogue, and companies like Apple are maintaining their strategic investments in India, recognizing the country’s growing role in global supply chains.