US President Donald Trump has made a harsh statement against Apple’s plans to shift iPhone production to India. Trump announced that he will impose a 25% customs duty on the company if Apple does not move production to the US. The statement was made on Trump’s Truth Social account.
Is Trump imposing additional taxes on Apple?
Trump stated in his post that he conveyed his expectations to Apple CEO Tim Cook a long time ago. “I have informed him that I expect iPhones to be manufactured in the US, not in India or anywhere else,” Trump said, adding that if this expectation is not met, Apple will have to pay a 25% customs duty to the US.
Apple’s production plans in India have become clearer in recent days. The aim is for all iPhones to be supplied in the US to be supplied from India. The company’s main manufacturer, Foxconn, is investing in a $1.5 billion facility in Chennai, India.
It was stated that this facility will be used to produce iPhone screens. Apple is trying to diversify its production due to the effects of the Covid-19 pandemic and trade tensions with China, and India has become one of the main pillars of this strategy.
In line with the company’s long-term plans, approximately 25% of iPhones sold worldwide are expected to be manufactured in India in the next few years. Although Apple has promised to invest $500 billion in the US over the next four years, it seems difficult to completely move iPhone production to the US.
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