Apple Ramps Up iPhone Production in India Amid US Trade Tensions and Russia Sanctions

In response to escalating trade tensions between the U.S. and certain nations, Apple has increased its iPhone manufacturing operations in India. This move comes as a result of mounting pressure from the White House due to those countries’ continued purchases of sanctioned Russian oil.

Treasury Secretary Janet Yellen recently stated on CNBC’s “Squawk Box” that additional tariffs could be imposed on these nations for continuing to purchase and resell Russian oil, a practice deemed unacceptable during the ongoing Ukraine conflict.

In early August, President Donald Trump increased tariffs on India to 50%, with plans to impose secondary tariffs at about 100% on Russia’s trading partners if a peace agreement isn’t reached with Ukraine by September.

According to a recent Bloomberg report, Apple has expanded production at five of its factories in India, preparing for the launch of the new iPhone 17 series. The expansion involves setting up new plants and factories owned by the Tata Group and contract electronics manufacturer Foxconn Technology, as well as plans to produce a new iPhone 17e model in India next year.

In recent years, Apple has been shifting more of its production to India in an effort to lessen its dependence on China, particularly amid ongoing trade disputes. In May, data from Canalys indicated that iPhone shipments from India to the U.S. grew by 76% as trade restrictions loomed.

Simultaneously, Apple has pledged over $600 billion in investments towards strengthening American manufacturing over the next four years. This includes a $100 billion spending expansion announced this month, which included a $2.5 billion investment to expand iPhone glass maker Corning’s production capabilities. By committing to domestic manufacturing, Apple should be exempt from any tariffs related to India.