Trump's Apple Beef Isn't Just About India-Made iPhones — It's Also About Skipped Middle East Trip: Report

Apple Inc. AAPL CEO Tim Cook has found himself at the receiving end of President Donald Trump‘s criticism, marking a stark contrast to their previously warm relationship, but reports suggest iPhone production in India is not the only reason.What Happened: According to The New York Times sources, Tim Cook turned down the Trump administration’s offer to join him alongside other CEOs and founders on a trip to the Middle East. During the trip, the President openly expressed his displeasure with Cook’s absence. Trump took the opportunity to praise other CEOs like Tesla Inc.‘s TSLA Elon Musk and Nvidia‘s NVDA Jensen Huang, who had joined him on the trip, while also taking jabs at Cook, the report said. Apple and the White House did not immediately respond to Benzinga’s request for comment. Moreover, despite Trump’s warnings, Apple is moving forward with its $1.5 billion expansion in India through its manufacturing partner, Foxconn. This expansion could be a key factor in escalating the ongoing trade tensions between Apple and the Trump administration.Trump’s disapproval peaked with a social media post threatening a 25% tariff on iPhones made outside the U.S.—a move that surprised both Apple executives and members of his own administration. This comes after iPhones manufactured in China had previously been exempted from a 145% tariff.According to Nu Wexler, principal at Four Corners Public Affairs, Cook’s public relationship with Trump has backfired, putting Apple at a disadvantage. Wexler believes that Trump’s new tariffs are a direct response to Apple’s plans to expand its manufacturing in India.Why It Matters: The recent turn of events is not a random occurrence, according to Ming Chu Kuo, a noted Apple analyst at TF Securities. Trump’s targeting of Apple is a calculated move to gain maximum political attention, especially with the ongoing discussions about reshoring manufacturing to the U.S.While speaking to reporters on Friday, Trump stated that he told Tim Cook, “that's okay to go to India, but you're not going to sell into here without tariffs.”Though Cook has committed to investing $500 billion towards various initiatives, including the construction of state-of-the-art data centers in Houston, Trump is more focused on Apple shifting its iPhone production to the U.S.Clarifying Trump’s tariff threat to Cook, Treasury Secretary Scott Bessent told Fox Business, “I think that one of our greatest vulnerabilities is this external production, especially in semiconductors and a large part of Apple’s components are in semiconductors, so we would like to have Apple help us make the semiconductor supply chain more secure.”Despite the strained relationship, Apple’s market value has soared under Cook’s leadership, now reaching over $2.9 trillion. However, the recent tariff threats could pose a significant challenge for the company. The stock has fallen for eight straight sessions and is down almost 20% year-to-date, underperforming its Magnificent Seven peers. READ MORE: Bitcoin, Ethereum, Dogecoin Encounter Memorial Day Dip: ‘Tremendous’ Opportunity In ETH Falling Below $2,400, Says Analyst – Grayscale Bitcoin Mini Trust (BTC) Common units of fractional undivided ben Image via Shutterstock