Apple is pushing more iPhone production into India while the White House hits the country with new trade threats over its growing ties with Russia.
According to CNBC, the tech giant is expanding operations at five factories in India, right as the U.S. government starts tightening its grip on countries buying oil from Moscow.
This comes as Washington accuses New Delhi of reselling discounted Russian crude during the Ukraine war, and warns that new penalties are on the table.
Scott Bessent, U.S. Treasury Secretary, told CNBC on Tuesday that the administration has “planned to up the tariffs on India,” and labeled the move as “secondary tariffs for buying the sanctioned Russian oil.”
He claimed India was “profiteering,” saying the country was taking advantage of the Ukraine conflict to purchase cheap Russian barrels and resell them for profit. “Which is unacceptable,” Bessent said on live television.
Trump raises penalties while Apple expands factory network
Donald Trump, now back in the White House, increased tariffs on Indian imports to 50% earlier this month. The president had already warned in July that if there was no peace deal between Russia and Ukraine by September, countries continuing trade with Moscow would face second-tier tariffs “at about 100%.” India, one of Russia’s biggest oil buyers, is squarely in Trump’s line of fire.
While the U.S. ramps up pressure, Apple is busy preparing for the launch of its upcoming iPhone 17. The company has ramped up manufacturing across five Indian plants, some of which are newly opened and tied to the Tata Group and Foxconn Technology. In addition, Apple is developing an India-specific version of the device, the iPhone 17e, which is scheduled for release next year.
Apple’s decision to grow its India footprint comes as it continues moving operations out of China. The company has spent the past few years trying to cut reliance on Chinese supply chains, especially as trade friction with the U.S. worsened. Now, with Washington targeting India, Apple appears to be walking a tightrope between geopolitical risks and production strategy.
In May, Canalys reported that iPhone exports from India to the U.S. jumped 76% as trade restrictions began to take effect. That surge highlights how much Apple has leaned on India to keep its U.S. shipments stable amid global tension. At the same time, the company has committed more than $600 billion to U.S. investment over four years, including $100 billion announced this month. That new capital includes a $2.5 billion injection into Corning, which supplies iPhone glass. These investments are seen as a way to avoid being caught up in future tariff fights.
Modi thanks Putin as U.S. pressure builds on Russian energy deals
Indian Prime Minister Narendra Modi is now trying to balance relations between Washington and Moscow. On Monday, he publicly thanked Russian President Vladimir Putin for briefing him on a recent phone call between Putin and Trump. The Indian Express called it a geopolitical “game of chicken,” with Modi stuck between two powers. India is hoping Trump will ease the penalties linked to its Russian oil ties, without cutting off diplomatic channels with Moscow.
Trump’s top trade adviser dismissed India’s energy decisions, calling the country’s use of Russian oil “opportunistic and deeply corrosive of the world’s efforts to isolate Putin’s war economy.” The comment added more weight to the growing list of warnings aimed at New Delhi, as it continues to buy barrels that Washington wants blocked.
Meanwhile, Belarus says it’s open to hosting a peace meeting if Moscow asks. The Vedomosti newspaper quoted press secretary Natalya Eismont saying, “Belarus did not ask for the role of mediator and is not asking for it, but if it is necessary for peace in our brotherly republic — we are ready to organize any meeting.” She clarified that the possibility was never discussed during a recent phone call between Belarusian President Alexander Lukashenko and Trump.
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Source: https://www.cryptopolitan.com/india-gets-more-apple-production/