Tim Cook defies Donald Trump in decision to ramp up iPhone 17 production in India

How should India respond to Donald Trump’s unpredictable trade and tariff tactics? In the compelling video above, economist Mitali Nikore (ex-World Bank, ADB, UN Women and UNDP) and Prof. Deepanshu Mohan (Dean, Office of Interdisciplinary Studies, OP Jindal Global University) decode Trump's erratic trade policies and what they mean for India’s economy, especially in areas like manufacturing, tariffs, tech trade and Apple exports.

Tim Cook defies Donald Trump

Meanwhile, in a bold and forward-thinking move, Apple has reaffirmed its commitment to ramping up production of its iPhone 17 handsets in India, alongside expanding operations in Vietnam. This decision, announced despite United States President Donald Trump’s vocal disapproval during a recent meeting with Apple CEO Tim Cook, underscores India’s growing stature as a global manufacturing powerhouse.

Apple's decision also exposes the erratic and counterproductive nature of Trump’s economic policies, which threaten to undermine both American innovation and the economic aspirations of emerging nations like India.

India has emerged as a beacon of opportunity in the global supply chain, leveraging its skilled workforce, improving infrastructure and business-friendly reforms to attract tech giants like Apple. Over the past five years, Apple’s manufacturing footprint in India has grown exponentially, with iPhone production reaching $22 billion in the last financial year — a 60% increase from the previous year.

The company now assembles a significant portion of its iPhones through partners like Foxconn and Tata Group, with plans to produce the majority of US-bound iPhones in India by 2026. This shift is not merely a response to geopolitical tensions between the US and China but a testament to India’s competitive edge in manufacturing, cost-efficiency, and scalability.

US president's caprice

Yet, United States President Trump, in a display of economic shortsightedness, has publicly rebuked Apple’s strategy. Speaking at a business summit in Doha, Qatar, on May 15, Trump recounted his conversation with Cook, stating, “I had a little problem with Tim Cook yesterday. I said, ‘Tim, you’re my friend, I’ve treated you very good. You’re coming here with $500 billion, but now I hear you’re building all over India. I don’t want you building in India'.” 

The president's remarks, laced with a paternalistic tone, dismiss India’s economic contributions and reveal a troubling misunderstanding of global trade dynamics. Trump’s insistence that Apple prioritise US manufacturing ignores the harsh reality: producing iPhones in the US could triple costs, with estimates suggesting prices could soar to $1,500–$3,500 per device.

Trump’s economic policy, characterised by aggressive tariffs and a fixation on domestic production, is not only impractical but also detrimental to American consumers and businesses. His claim that India imposes high tariffs, while conveniently ignoring India’s offer of a “no-tariff deal” for US goods, paints a misleading picture. India has actively sought to strengthen trade ties with the US, with its trade minister scheduled to visit between May 17 and 20, 2025, to negotiate further.

By dismissing India’s role in Apple’s supply chain, Trump risks alienating a key ally and disrupting a strategy that benefits both nations: India gains jobs and investment while Apple diversifies away from China, reducing risks tied to US-China trade tensions.

Apple’s defiance of Trump’s pressure is a win for India’s economic vision. The company has reassured the Indian government that its investment plans remain unchanged, recognising India as a “crucial geography” for expanding its manufacturing footprint. Posts on X echo this sentiment, with users noting that Apple plans to significantly scale up iPhone 17 Pro production in India, undeterred by Trump’s concerns. This move aligns with India’s “Make in India” initiative, which has transformed the country into a hub for high-tech manufacturing. In March 2025 alone, Apple’s suppliers, Foxconn and Tata, exported nearly $2 billion worth of iPhones to the US, bypassing Trump’s looming tariffs on Chinese goods.

No way to 'make America great again'

Trump’s rhetoric, however, is more than just misguided — it’s hypocritical. While he champions “America First,” his policies ignore the interconnected nature of global economies. Apple’s $500 billion investment in US manufacturing, including new facilities in states like Texas and Arizona, demonstrates its commitment to the US economy. Yet, Trump’s demand that Apple abandon India overlooks the fact that global supply chains thrive on diversification, not isolation. His approach risks inflating costs for American consumers, stifling innovation, and straining diplomatic ties with India, a nation that has proven itself a reliable partner in counterterrorism and economic cooperation.

India’s resilience in the face of Trump’s economic bullying is a cause for celebration. By choosing to deepen its partnership with Apple, India is not only securing economic gains but also asserting its rightful place on the global stage. The iPhone 17, set to be assembled in India’s state-of-the-art facilities, symbolises more than a smartphone — it represents a rejection of Trump’s erratic policies and a vote of confidence in India’s future. As Apple doubles down on its Indian operations, it’s clear that the world’s largest democracy is not just keeping up but leading the charge in the global tech revolution.