Trump's Ultimatum to Tim Cook: Only iPhones Built in the US Can Be Sold Here- Full Story in 5 Points

Tensions are rising fast for Apple. In a latest development to Apple - Donald Trump saga, the US President has now has turned up the heat on Apple, warning that any iPhone sold in the United States must be built within US borders or else the company has to face a crushing 25% tariff.

This ultimatum comes as Apple deepens its manufacturing roots in India, raising questions about the future of its global supply chain. Trump claims he personally told Apple CEO Tim Cook that he does not want Apple to build iPhones in India and that India can take care of itself. He made it clear that outsourcing is no longer acceptable. The pressure is immense on Apple, as the Cupertino giant is caught in the middle of a geopolitical power play. Here is the full story broken down for you in 5 simple points to help you catch up with everything that has happened so far.

1. Trump to Apple: Build iPhones in the US or Pay Up

The US President Donald Trump has issued a bold warning to Apple, telling CEO Tim Cook that if iPhones sold in the US aren't made in America, the company will face a 25% tariff. Trump said he personally told Cook he doesn't want Apple expanding production in India, especially after years of relying on China. This will worry Apple as more than 60 million iPhone units are sold in the US annually.

"I had a little problem with Tim Cook yesterday. I said to him, my friend, I am treating you very good. You are coming up with $500 billion, but now I hear you are building all over India. I don't want you building in India," Trump was heard speaking at a business event in Doha. He added that it is not easy to sell in India as it one of the highest-tariff countries. "We are not interested in you building in India. India can take care of themselves."

2. Apple's India Strategy Moves Ahead, For Now

While there has been no response from Apple on Trump's latest warning, the company has reportedly reassured Indian officials that its manufacturing plans in India will not change. The company told that India remains a key part of its global supply chain and it has no intention of revoking its manufacturing there.

India serves as a key player for Apple's global supply chain due to a combination of factors- a large skilled workforce, government incentives through Production-Linked Incentive (PLI) scheme, a growing local market and low labour costs. Apple's decision to move its manufacturing from China and diversify its supply chain, particularly by moving production to India, is a gradual process that began in early 2020s amidst the COVID-19 pandemic and increasing trade tensions globally.

3. India Keeps it Calm

India has not made any official comment on the matter. As per the media reports, an Indian official has just highlighted that India serves as a key manufacturing hub for Apple and the company would make such decisions, realising the manufacturing competitiveness.  

4. iPhone Production in India on Rise

Apple has been consistently increasing its iPhone production in India. The company is said to have produced nearly 43 million iPhones last year alone. Apple currently produces 20 per cent of all its iPhone units in India.

5. Bigger Picture: Trade Tensions Rising 

Trump's comments come amid broader trade talks between the US and India. Trump claims India has offered to drop 100 per cent tariffs on US goods, but Indian officials haven't confirmed this. New Delhi is trying to secure full exemption from the 26 per cent tariff on domestic goods.

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