US President Donald Trump recently informed a group of US governors that Apple CEO Tim Cook is considering relocating manufacturing from Mexico to the United States, according to Bloomberg. While neither Cook nor Apple has officially confirmed this move, Trump stated that Cook has “stopped two plants in Mexico” and plans to produce goods in the US.
This announcement followed a meeting between Trump and Cook, during which Trump mentioned that Cook committed to investing hundreds of millions of dollars in the US. After their discussion, Trump told reporters, “He’s going to start building,” adding, “Very big numbers — you have to speak to him. I assume they’re going to announce it at some point.”
It remains unclear which specific Apple facility Trump influenced Cook to close, but Bloomberg suggests it may involve a Foxconn manufacturing site. Apple does not heavily depend on Mexico for production, primarily utilizing suppliers for certain components, with most manufacturing occurring in Asia.
Since winning the US elections last year, Cook has sought to strengthen his relationship with Trump, initially visiting him at Mar-a-Lago during the transition period and later attending the President’s inauguration in January. During Trump’s first term, Cook leveraged this relationship to secure tariff exemptions for iPhones. However, Trump has indicated a desire to avoid such exemptions while imposing new tariffs on imported goods.
In terms of its operations in India, Apple is increasingly looking to reduce its reliance on China for iPhone production. The company began assembling its entire iPhone 16 series in India last year and plans to produce the latest iPhone 16e variant there as well. Currently, Apple manufactures about 15 percent of its iPhones in India, with projections suggesting this could rise to around 25 percent by 2027, according to analysts from JPMorgan and Bank of America.
While the reciprocal tariffs imposed by Trump may affect India, it remains uncertain whether they will disrupt iPhone manufacturing in the country. According to a Bank of America analysis, Apple may need to increase its prices by approximately 9% to offset the impact of tariffs imposed by Trump, which are expected to be at least 10% on products like iPhones and iPads. Notably, Trump signed a memorandum implementing ‘reciprocal tariffs’ based on the charges foreign nations impose on American goods, treating countries with a VAT system similarly to those with traditional tariffs.
