Donald Trump has warned Apple and its chief executives about a reporting plan for high-tech companies to source cell phone production from India to the US.
The US president said there was a “minor problem” with Apple’s Tim Cook after reports that the company plans to switch mobile phone assembly from China to India for the US market.
“I had a bit of a problem with Tim Cook yesterday,” Trump said in Qatar on Thursday. Referring to Apple’s recent promise to spend $500 million (£37.5 billion) in the US, he added:
The complex manufacturing process behind the iPhone includes over 1,000 components sourced from around the world, which are primarily put together in China. While Apple keeps details about the production process secret, analysts estimate that around 90% of iPhones are assembled domestically.
However, trade tensions between Washington and Beijing reportedly increased production in India.
“I told Tim… we treated you really well, we put up with all the plants you’ve built in China for years, now you have to build for us (for us),” Trump said. “We are not interested in Indian buildings. India can take care of itself… We want you to build here.”
Trump then said Apple would “help better production in the US,” but he did not provide further details to support his claim.
Currently, no iPhones are created in the US, and experts have warned that moving an assembly of Apple’s top-selling products to your home country is unrealistic and expensive. US financial company Wedbush Securities estimates that iPhone costs will be higher if Congress moves to the US.
Apple was approached for comment.
The US president also said on Thursday that India had provided a trade agreement offering “no tariffs” on American goods.
New Delhi aims to close its trade deal with the US amid a 90-day suspension announced by Trump on April 9th on a tariff hike for his trading partners.
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“It’s very difficult to sell in India. They basically offer a transaction where they literally don’t charge us any customs duties,” Trump said.
India’s Prime Minister Narendra Modi has been promoting his country in recent years as a smartphone manufacturing hub.
In March, Apple’s leading Indian suppliers, Foxconn and Tata, shipped a record-high nearly $20 billion iPhone to the US to bypass Trump’s impending tariffs.
Reuters contributed to this report.