U.S. President Donald Trump has once again rattled global business conversations by issuing a strong warning to Apple: if the tech giant continues to import devices from countries like India instead of manufacturing in the U.S., it could face a 25% tariff. The message is clear — “Make in America, Sell in America.” But can Apple truly afford to shift its manufacturing base back to the U.S.? And how does India’s economic ascent play into this global equation?
Is U.S.-Based iPhone Manufacturing Realistic?
This isn’t the first time this debate has surfaced. Back in 2011, when Trump wasn’t in office, then-President Obama had asked Steve Jobs why Apple didn’t manufacture in the U.S. Jobs’ response was blunt and prophetic: “Those jobs aren’t coming back.”
The reality is, building a full-scale iPhone manufacturing facility in the United States would take at least 5–10 years. An iPhone that currently retails between $600–$800 could cost as much as $3,500 if made entirely in America. Why? Because the U.S. lacks the comprehensive supply chain, inexpensive labor, and manufacturing ecosystem that countries like China and India have built over decades.
Even if Apple were to limit its operations to assembling phones in the U.S., the production cost would rise by 35%. In India, for example, 20% of the iPhone content is localized, while the rest is imported and assembled by a cost-efficient workforce. The same model would be far more expensive in the U.S. due to labor availability and wage structures.
Moreover, if President Trump enforces tariffs not only on finished iPhones but also on imported components, costs would climb further. While Apple enjoys high profit margins, its manufacturing partners like Foxconn operate on razor-thin margins of 3–4%, highlighting the tight economics of the electronics industry.
India: From Agrarian Dependence to Global Powerhouse
India has now surpassed Japan to become the world’s fourth-largest economy — a symbolic and strategic milestone. What makes this rise more compelling is the underlying transformation in India’s workforce and productivity.
Although agriculture contributes just 17% to the GDP, nearly 65% of India’s population still depends on it, with 45% actively working in the sector. Over the next two decades, a major shift is expected as this workforce transitions to manufacturing and services — key growth drivers for the future.
India’s demographic edge is also crucial. The average age of an Indian is just 29, offering a massive young, working-age population. Contrast that with Germany, where the average age is 48 — and aging is slowing economic expansion.
With initiatives like “China Plus One,” India is emerging as a preferred alternative manufacturing hub for global companies. The government’s focus on controlling fiscal deficits, reducing public debt, and supporting industrial growth is helping stabilize the economy further. The recent record dividend from the Reserve Bank of India (RBI) is also seen as a sign of financial health.
Global GDP Rankings: India Eyes Top 3
As it stands today, the United States leads with a GDP of $28–30 trillion, followed by China at $18 trillion. India, Germany, and Japan trail in the $4–4.5 trillion range, with the UK and France slightly behind.
India is now poised to overtake Germany in the next two years, becoming the third-largest economy. But catching up with China and the U.S. will require long-term, consistent growth. Currently, India’s GDP mirrors where the U.S. was in 1985 and where China stood around 2007 — meaning India is about 17–18 years behind China and 40 years behind the U.S.
Disclaimer:
This article is based on public discussions and expert commentary regarding global trade dynamics, Apple’s manufacturing decisions, and India’s economic progress. It is intended for informational purposes only and does not reflect the official positions of any individuals or organizations mentioned. Opinions expressed are those of the author or quoted sources.
