
In response to escalating tensions regarding Russia's oil purchases, Apple has ramped up its iPhone manufacturing operations in India. The U.S. government has expressed concerns about India's dealings with Russian oil, with Treasury Secretary Scott Bessent stating, "We have planned to up the tariffs on India," during a recent appearance on CNBC's "Squawk Box." Bessent accused India of "profiteering" by acquiring discounted Russian oil and reselling it, particularly during the ongoing conflict in Ukraine, which he deemed "unacceptable." This follows President Donald Trump's recent decision to raise tariffs on Indian imports to a staggering 50%. The president has also warned that if a peace agreement with Russia is not reached by September, he could implement secondary tariffs of nearly 100% on countries trading with Russia. Amid these geopolitical challenges, Apple is reportedly enhancing production at five of its manufacturing facilities in India as it prepares for the anticipated release of the new iPhone 17 models. This expansion involves new plants affiliated with the Tata Group and the contract manufacturer Foxconn Technology, according to sources familiar with the situation. Moreover, Apple is planning to introduce a new iPhone 17e model in India next year. Over the past few years, the tech giant has increasingly shifted its production focus to India in an effort to lessen its dependency on China amid rising trade tensions. Data from Canalys revealed that iPhone exports from India to the U.S. surged by 76% in May, highlighting the growing importance of Indian manufacturing in Apple's global strategy. In parallel, Apple has pledged to invest over $600 billion in its U.S. operations over the next four years to bolster domestic manufacturing. This includes a recent $100 billion spending plan, which features a $2.5 billion investment aimed at expanding production capabilities for iPhone glass maker Corning. Such commitments to American manufacturing may help Apple navigate potential tariffs related to its operations in India.
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