Apple Considers Factory Expansion in Brazil to Mitigate Tariff Impact

Apple Inc. may expand its factory in Jundiai, Brazil, to counteract rising production costs in Asia due to increased tariffs from the United States. Major suppliers in China and India are significantly affected by these tariffs, prompting Apple to consider alternative manufacturing locations. The Jundiai facility already assembles various iPhone models and benefits from lower export duties to the US.

Apple Inc. is reportedly exploring the expansion of its operations at the Foxconn factory in Jundiai, São Paulo, as a strategy to mitigate increasing production costs in Asia. This consideration follows the imposition of new tariffs by the United States government that significantly impact key Apple suppliers located in China and India.

Currently, more than half of Apple’s smartphone shipments are produced in China, a nation that has faced reciprocal tariffs as high as 34% since April 2. Additionally, India has recently increased its device production but will face a 26% tariff, making costs even steeper for Apple in that region.

The Foxconn facility in Jundiai has an established partnership with Apple, being responsible for the assembly of various iPhone models from the iPhone 13 to the upcoming iPhone 16, now authorized for manufacture. The current tariff situation renders Brazil a potential alternative manufacturing site since the country benefits from a relatively modest 10% export duty to the United States, as enacted by President Donald Trump.

In summary, Apple Inc. is considering expanding its Jundiai factory in Brazil to counteract the financial strain resulting from new tariffs affecting its suppliers in Asia. With a significant portion of its smartphone production originating from China and considerable tariffs imposed, Brazil presents a feasible solution for the tech company. This strategic move could establish a more cost-effective manufacturing base for Apple amidst the evolving global trade landscape.

Original Source: breakingthenews.net