Washington / New Delhi — Apple is reportedly ramping up iPhone production in India even as the country faces growing trade pressure from Washington over its continued imports of Russian oil.
Treasury Secretary Scott Bessent said Tuesday on CNBC’s Squawk Box that the U.S. administration is preparing to impose secondary tariffs on India, accusing New Delhi of “profiteering” by purchasing discounted Russian crude and reselling it during the ongoing war in Ukraine. “This is unacceptable,” Bessent added, signaling a tougher U.S. stance toward India’s energy dealings with Moscow.
Earlier this month, President Donald Trump raised tariffs on India to 50% and warned that if no peace settlement is reached in Ukraine by September, secondary tariffs on Russia’s trading partners could climb to 100%.
Apple Boosts India Production Amid Trade Tensions
Despite the escalating tariff threats, Apple Inc. is significantly increasing its manufacturing footprint in India. According to a report by Bloomberg, the tech giant has expanded production across five factories ahead of the launch of its next-generation iPhone 17 lineup.
The move involves facilities operated by Indian conglomerate Tata Group and long-time Apple supplier Foxconn Technology. Sources familiar with the matter also indicated that Apple is preparing to produce a new iPhone 17e model in India as early as next year.
Apple has not publicly commented on the reported production expansion.
India’s Role in Apple’s Supply Chain Strategy
The company’s growing reliance on India comes as Apple seeks to diversify away from China, where production risks have grown amid U.S.-China trade disputes and geopolitical uncertainty.
According to data from Canalys, iPhone shipments from India to the U.S. surged 76% in May, highlighting the country’s rising role in Apple’s global supply chain.
Balancing U.S. Investments With India Operations
While deepening its India presence, Apple has simultaneously pledged more than $600 billion in investments in the United States over the next four years to strengthen American manufacturing capacity.
That includes a $100 billion expansion announced this month, with $2.5 billion allocated to increase production at Corning, the glass supplier for iPhones.
Analysts say Apple’s large-scale U.S. investments could shield the company from the brunt of India-related tariffs, ensuring compliance with Washington’s domestic manufacturing agenda even as it scales up assembly in India.
Geopolitical Crossroads
Apple’s India expansion highlights the delicate balance global companies must strike as geopolitical tensions reshape supply chains. For India, increased iPhone production represents both an economic opportunity and a potential diplomatic flashpoint as it navigates its relationships with Washington and Moscow.
