Donald Trump has expressed concerns to Apple and its executives regarding a plan that encourages high-tech companies to relocate cell phone manufacturing from India back to the US.
The US President mentioned a “minor issue” with Tim Cook from Apple after reports surfaced indicating that the company is considering shifting mobile phone assembly operations from China to India targeting the US market.
“I encountered a small issue with Tim Cook yesterday,” Trump stated while in Qatar on Thursday. He referred to Apple’s recent commitment of investing $500 million (£37.5 billion) in the US, adding:
The intricate manufacturing process of the iPhone involves over 1,000 components sourced globally, mainly assembled in China. Although Apple keeps its production details under wraps, analysts suggest that approximately 90% of iPhones are assembled domestically.
Nevertheless, rising trade tensions between Washington and Beijing have reportedly led to increased production in India.
“I told Tim… we have supported you well, and we’ve tolerated all the facilities you’ve established in China for years, and now we expect you to build [for] us. We said, “We are not interested in you building in India. India can manage on its own… We want you to construct here.”
Trump also mentioned that Apple would “aid in enhancing production in the US,” but he did not elaborate further on this claim.
Currently, no iPhones are manufactured in the US, and experts have cautioned that relocating assembly of Apple’s best-selling products to the home country may be impractical and costly. US financial firm Wedbush Securities predicts that iPhone expenses would rise if production moves to the US.
Apple has been approached for comments.
Additionally, the US President noted on Thursday that India had extended a trade agreement offering “no tariffs” on American goods.
New Delhi aims to finalize its trade deal with the US amidst a 90-day suspension that Trump announced on April 9th concerning a tariff increase for its trading partners.
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“Selling in India is quite challenging. They essentially offer a deal where they do not impose any customs duties on us,” Trump remarked.
Over the years, India’s Prime Minister Narendra Modi has been positioning his country as a hub for smartphone manufacturing.
In March, Apple’s primary Indian suppliers, Foxconn and Tata, exported a record high of nearly $20 billion worth of iPhones to the US to avoid Trump’s imminent tariffs.
Reuters contributed to this report.
Source: www.theguardian.com
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