Apple plans to expand manufacturing in Brazil to reduce the impact of U.S. tariffs on imports from China and India. This expansion aims to avoid increased prices for consumers and maintain competitiveness. Apple and Foxconn have certification to assemble the iPhone 16 in Brazil, expanding on their existing production of previous models.
Apple is reportedly planning to increase its manufacturing operations in Brazil to mitigate the impact of newly imposed U.S. tariffs on imports from China and India. This decision follows the Trump Administration’s announcement of tariffs of 34% on Chinese goods and 26% on Indian imports, both of which are crucial to Apple’s hardware production.
To avoid escalating consumer costs, Apple aims to enhance its assembly operations in Brazil, where they encounter a much lower import tax of 10%. Sources indicate that Apple and its manufacturing partner, Foxconn, have already obtained the necessary certification to commence assembly of the iPhone 16 in Brazil.
The existing facility is currently engaged in producing the iPhone 13, 14, and 15. The proposed expansion will include production of the iPhone 16 Pro and necessitate additional investment and restructuring. This strategic move may enable Apple to meet local demand and export to the U.S., thereby circumventing a significant portion of the newly enacted tariffs while maintaining competitive pricing.
In summary, Apple is looking to expand its manufacturing in Brazil as a strategic response to U.S. tariffs on imports from China and India. This expansion will allow the company to reduce production costs, avoid significant tariffs, and continue meeting consumer demand while potentially maintaining competitive pricing in the U.S. market.
Original Source: www.channelnews.com.au
