US President Trump urged Apple CEO Tim Cook not to build in India, citing high tariffs and asserting that India can manage on its own. He indicated that Apple should focus on US expansion instead.

US President Donald Trump has told Apple CEO Tim Cook that he does not want him "building in India" and that "India can take care of themselves".

At a business event in Doha, the US President said he had a "little problem" with Tim Cook. "I said to him, my friend, I am treating you very good. You are coming up with $500 billion, but now I hear you are building all over India. I don't want you building in India. You can build in India, if you want to take care of India because India is one of the highest tariff nations in the world, so it is very hard to sell in India," the US President said.

 

TRUMP CLAIMS INDIA OFFERED ZERO TARIFFS ON US GOODS

Trump also claimed that New Delhi has offered a deal to Washington, DC and said it would charge no tariffs on US goods. India has not made any such announcement yet. "They (India) offered us a deal where basically they have agreed to charge us literally no tariffs. I said, Tim, we are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India. India can take care of itself," Trump said.

The US President said Apple, whose iPhones and MacBooks are sought after worldwide, is set to expand its production in the US.

Donald Trump's nudge to Apple against manufacturing in India comes at a critical time when the iPhone maker is planning to expand its India production and shift its manufacturing away from China to tackle the Trump administration's tariffs move.

Earlier this month, AFP reported that Tim Cook had said he expected "a majority of iPhones sold in the US will have India as their country of origin".

Apple currently has three plants in India, two in Tamil Nadu and one in Karnataka. One of these is operated by Foxconn, and the other two by the Tata Group. Two more Apple plants are in the pipeline.

In the last fiscal ending March, Apple had assembled iPhones worth $22 billion in India, a 60 per cent increase in production as compared to the previous financial year.

Trump said that following his conversation, Apple will be increasing its production in the United States. He did not share further details about the outcome of the discussion or any changes in Apple’s plans in India.

Trump’s remarks came just days after India threatened to impose retaliatory tariffs on the US. This was in response to the US raising duties on Indian steel and aluminium exports.

Despite the recent tensions, people familiar with the matter told Bloomberg that trade talks between India and the US are still ongoing. Negotiations are continuing, and both countries are working towards reaching agreements.

 

WIDER CONTEXT OF TRADE AND DIPLOMACY

Trump’s comments come during a time of mixed signals in the relationship between India and the US. According to Bloomberg, Indian officials have grown frustrated over Trump’s recent public remarks. These included his announcement of a ceasefire between India and Pakistan and his suggestion that trade was used as a bargaining tool to help stop the military conflict between the two nations.

Indian officials have denied that trade matters were linked to talks over the military situation with Pakistan. No details have been officially released from either side confirming whether these issues were discussed together.

Apple has been steadily increasing its manufacturing presence in India over the last few years.

The company makes several iPhone models in the country through contract manufacturers such as Foxconn and Wistron. These efforts have been in line with India’s goal to attract more foreign investment in electronics and reduce reliance on imports. 

SOURCE: Thetimesofindia.