Trump’s Opposition to Apple’s Production in India – What It Means for Markets

Background: Trump’s Opposition

In a recent rally and televised interview, former U.S. President Donald Trump took direct aim at Apple’s growing investment in India. He accused the tech giant of “hurting American workers” by outsourcing jobs to India and emphasized that “Apple should manufacture in the U.S., not India.” While Trump stopped short of announcing formal policy actions, his criticism has sparked fresh concerns over a protectionist tilt if he wins the presidency in November 2025.

These comments come at a time when Apple is doubling down on India, having invested over $5 billion already and targeting 25% of its global iPhone production to shift to the country by 2026. Trump’s rhetoric has raised a red flag for markets and policymakers tracking U.S.-India trade and technology dynamics.

Why Apple Shifted to India

Apple’s India pivot isn’t random it’s strategic. The move is part of its broader “China+1” diversification strategy. Here’s why

• Rising U.S.-China Tensions: With tariffs, trade wars, and regulatory headwinds, China has become an increasingly risky place for U.S. firms.

• India’s Incentives: The Modi government’s PLI (Production Linked Incentive) schemes offer subsidies and policy support to global electronics players.

• Cost and Market Factors: India’s competitive labor costs, improving infrastructure, and rising middle class make it an attractive manufacturing hub.

As a result, Apple’s key partners like Foxconn and Tata Electronics have been rapidly scaling operations in India. Foxconn alone is investing over $1.5 billion in its Indian supply chain. Currently, India accounts for 12–14% of iPhone production, with a target of 25% by 2026.

Impact on Indian Markets

Trump’s criticism could create temporary turbulence in the Indian equity markets, especially for stocks tied to Apple’s supply chain. These include:

• Tata Electronics – assembling components for Apple devices

• Foxconn India – Apple’s largest global supplier, expanding in Tamil Nadu and Karnataka

• Dixon Technologies – contract manufacturer that could benefit from broader PLI-driven demand

If Trump returns to power, policy risks could emerge in the form of tax penalties, import duties, or stricter U.S. guidelines on tech outsourcing. While there’s no direct threat yet, the sentiment could turn cautious for investors exposed to electronics manufacturing.

FDI and Export Implications

India exported over $15 billion worth of mobile phones in FY2024—a record figure driven largely by Apple and its supplier ecosystem. But if the U.S. reverts to protectionist policies:

• FDI inflows from U.S. tech firms could slow, especially if political uncertainty clouds boardroom decisions.

• India’s export incentives and tax treatments may come under the scanner from Washington.

• Tech firms may face lobbying pressure, stuck between operational strategy and political diplomacy.

Still, experts believe that other major economies like the EU and Japan are unlikely to follow a similar anti-outsourcing playbook. India’s rise is increasingly viewed as part of a broader realignment in global manufacturing, not an anomaly.

Expert Views

Conclusion: Short-Term Noise, Long-Term Story Intact

Trump’s vocal disapproval of Apple’s India pivot may jolt investor sentiment in the short run, especially for tech-linked or sentiment-driven stocks. But from a strategic standpoint, Apple’s shift is rooted in supply chain resilience, economics, and geopolitical necessity. One politician’s opinion, even if it becomes policy, is unlikely to completely reverse years of structural progress.

Investors should keep an eye on:

• Apple’s earnings calls and guidance on India

• U.S. election developments and trade policy signals

• Domestic Indian reforms in logistics, semiconductors, and trade infrastructure

In the big picture, India isn’t just another market it’s emerging as a global factory. And that story is far bigger than any election cycle.