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DOHA: On Thursday, U.S. President Donald Trump urged Apple to increase its manufacturing presence in the United States rather than relocating to India, where the tech giant has indicated plans to shift production due to U.S. tariffs on China.
“I had a bit of a discussion with Tim Cook,” Trump said, referencing Apple’s CEO during his multi-day trip to the Gulf region. “I told Tim, we’ve supported you quite well. We allowed all the factories you’ve built in China for years.”
The President stated that he made it clear to Cook: “We’re not interested in you setting up shop in India… we want you to build here, and they will be ramping up production in the United States.”
This comes in light of an agreement announced earlier in the week between the U.S. and China to pause mutual tariffs for 90 days, easing a trade conflict that has unsettled financial markets and raised concerns of a global economic slowdown.
Before reaching the deal, Cook mentioned that Apple was "unable to accurately gauge the effects of tariffs."
While discussing the company’s first-quarter earnings in early May, Cook noted that he anticipated “most iPhones sold in the U.S. would likely be sourced from India.”
Despite a temporary exemption for high-end technology products such as smartphones and computers, he expressed concerns about the uncertain repercussions of the 145% tariffs imposed on items from China, which has long been Apple’s primary manufacturing location.
Although finished smartphones are currently exempt from Trump’s tariffs, many components used in Apple devices are not.
Expecting the tariffs to cost the company $900 million in the current quarter, Cook indicated that their impact had been “limited” in the early part of the year.
India, which is also facing U.S. tariffs, hinted at possible retaliatory actions regarding the increased duties on steel and aluminum.
India’s Foreign Minister, Subrahmanyam Jaishankar, pointed out on Thursday that trade discussions with the United States are ongoing, emphasizing that any deal should be advantageous for both sides.
In February, Apple announced plans to invest over $500 billion in the U.S. over the next four years, committing to creating 20,000 new jobs in the country.
"Apple is already investing $500 billion, but they will be increasing their production, which is great," Trump remarked while in Qatar.
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