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Zero tariffs and no Apple manufacturing? Trump’s statements raise eyebrows and concerns in India

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Apple Chief Executive Officer (CEO) Tim Cook at the inauguration of India's second Apple retail store in New Delhi in April 2023 (ANI file photo)

Dr S Jaishankar says that the trade is going on between India and the US and these are complicated negotiations and no final agreement has been reached yet

Our Bureau
Doha/New Delhi/Mumbai

In a shocking statement, US President Donald Trump on Thursday claimed that India had offered the US a nearly no-tariff deal on a reciprocal basis. “They have offered us a deal where we’re basically they’re willing to literally charge us no tariff,” President Trump said while addressing a news conference in Doha.

He also mentioned that he encouraged Apple CEO Tim Cook to raise production in the US rather than expanding manufacturing in India. “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. You can build in India, if you want to take care of India because India is one of the highest tariff nations in the world, so it is very hard to sell in India,” Trump said.

Earlier it was reported that Apple is set to transition all production of iPhones destined for the US market to India. Apple’s decision to ramp up its production in India aligns with its broader goal of diversifying manufacturing operations away from China.

Meanwhile, India’s Commerce Minister Piyush Goyal’s is going to US on May 16 (Friday) to commence advance trade talks which is going on for some time at official level. This visit comes post US Vice President JD Vance’s trip to New Delhi in April in an effort to secure a bilateral trade deal with US.

Earlier, responding to claims of President Trump on a zero-tariff deal with India EAM Jaishankar said that the trade is going on between India and the US. He said these are complicated negotiations and no final agreement has been reached yet.

His remark came after the US President claimed in Doha that India has made a trade deal with zero tariffs.

On April 23, US President JD Vance said that India and the US finalised terms of reference for the ongoing negotiations for completing a bilateral trade agreement between the two countries.

“Both governments are working on a trade agreement built on shared priorities, including creating new jobs, building durable supply chains, and achieving prosperity for workers,” he said.

After United States President Donald Trump claimed that India had offered the US a Zero-tariff deal on a reciprocal basis, Congress MP Manish Tewari questioned BJP-led central government’s trade policy and demanded an explicit answer from the government.

In a social media post on X, Tewari said, “Is it a fact that India has offered a Zero Tariff deal to the United States? That needs an explicit answer from the Government?”

Congress leader Jairam Ramesh has also raised questions on Trump’s claims. He further questioned Prime Minister Narendra Modi’s silence on this issue.

“The Commerce Minister is in Washington DC and President Trump has made yet another grand announcement from Doha. There is total chuppi from our PM. What has he agreed to and what linkage is there between this and the stoppage of Operation Sindoor? Ramesh posted on X.

Also, after US President Donald Trump on Thursday suggested that he had asked Apple boss Tim Cook to not manufacture in India, Commerce Secretary Sunil Barthwal said that companies will consider competitive advantages when shaping their manufacturing strategies, and India has emerged as a strong and competitive hub for smartphone production.

“Companies will see competitive advantage while deciding their manufacturing strategy. India has emerged as a competitive hub for smart phone manufacturing,” he said.

“We don’t comment on what the President (of another country) says,” he added.

Recently, Apple took some steps to expand its iPhone production in India, setting up assembly plants operating in the country. Two of these plants are located in Tamil Nadu, and one is in Karnataka. For these plants Apple has signed contracts with manufacturers, such as Foxconn and Tata Group, to set up production units.

Responding to reports stating US President Donald Trump had said that India had offered the US a trade deal with zero tariffs, the Commerce Secretary Sunil Barthwal said, “Any statement which is coming from the head of a government elsewhere, I think it has been appropriately replied to at the level of the External Affairs Minister. So, I would not like to comment any further.”

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