Trump's Call for Domestic iPhone Manufacturing
President Donald Trump has been vocal about his desire for Apple to shift iPhone production to the United States, emphasizing the importance of domestic manufacturing. In recent statements, he has expressed frustration with Apple's growing operations in India, stating, 'We are not interested in you building in India, India can take care of themselves, they are doing very well, we want you to build [in the US].' This push comes amid broader tariff policies, including a threatened 25% tariff on imported smartphones, aimed at compelling companies like Apple to relocate production.
Trump's stance is rooted in a vision of revitalizing American manufacturing and creating jobs at home. His administration has proposed tariffs on Chinese imports and other trading partners, with India facing a baseline 10% tariff and a potential 26% 'reciprocal' levy that was announced and then paused in April. This policy framework is designed to pressure tech giants to prioritize U.S.-based facilities over foreign alternatives.
India's Rising Role in iPhone Production
While Trump advocates for U.S. production, India has emerged as a significant hub for iPhone manufacturing, particularly through Foxconn, Apple's primary assembler. Foxconn's sprawling 300-acre campus in Devanahalli, near Bangalore, represents an estimated $2.5 billion investment, with sleek buildings already operational and continuing to expand. Additionally, a $1.5 billion display module plant near Chennai in Tamil Nadu is underway, marking one of the largest investments in India's tech manufacturing sector.
Apple's strategic shift to India began after the Covid-19 pandemic, driven by a global push to reduce reliance on Chinese production. In May 2025 alone, Foxconn shipped nearly $1 billion worth of iPhones from India to the U.S., the second-highest monthly total after a record $1.3 billion in March. This move has drawn sharp criticism from Trump, who reportedly told Apple CEO Tim Cook he has a 'little problem' with the company's focus on Indian production for the American market.
The appeal of India lies in its lower production costs and supportive government policies, which have attracted high-end manufacturers like Foxconn. Industry experts note that the cost difference, combined with geopolitical tensions affecting Chinese operations, makes India a compelling choice despite U.S. pressure to relocate stateside.
Challenges of Bringing Production Back to the US
Despite Trump's insistence, replicating India's manufacturing success in the U.S. faces significant hurdles. Analysts point out that sustained government financial support would be necessary to revive domestic manufacturing on the scale required for iPhone production. Additionally, expanding the pool of qualified factory workers through training programs would be essential to meet the demands of such complex assembly processes.
The situation in India serves as a stark contrast, highlighting why Trump's vision may not materialize without substantial policy interventions. While Apple and Foxconn continue to invest heavily in Indian facilities, the debate over where iPhones should be made remains a contentious issue between corporate strategy and national economic goals.