Trump's iPhone warning weighs on trade deal talks

Indian team in US to thrash out the first tranche of the much-awaited BTA

- Dhirendra Kumar

A tweet from US President Donald Trump, threatening a 25% tariff on foreign-made iPhones imported into the US, has put Indian trade negotiators in a bind. The Indian trade team is in Washington to thrash out the first tranche of the much-awaited bilateral trade agreement (BTA) with the US.

In his tweet on Friday on his Truth Social platform, Trump said, "I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America to be manufactured and built in the United States, not in India or anywhere else. If that is not the case, a tariff of at least 25% must be paid by Apple to the US. Thank you for your attention to this matter!"

The US president also reignited a trade war with a threat to impose 50% higher tariffs on imports from the European Union (EU).

Two Indian officials familiar with the US-India trade talks said Trump's comments won't impact the trade negotiations. "The tweet does not change our negotiating posture," the first official said on the condition of anonymity.

"However, if Apple alters its sourcing and production decisions based on this pressure, it may affect India's electronics exports."