Apple Plans Manufacturing Expansion in Brazil To Mitigate U.S. Tariffs

Apple is reportedly expanding its manufacturing in Brazil to reduce the impact of U.S. tariffs on imports from China and India. This strategy involves increasing assembly operations to avoid higher costs for consumers, with the facility already producing iPhone models 13, 14, and 15, and preparing for the iPhone 16. The expansion may help navigate tariffs while serving both local and U.S. markets.

Apple Inc. is planning to enhance its manufacturing operations in Brazil in response to recently imposed U.S. tariffs on imports from China and India. The tariffs, which include a 34% tax on Chinese goods and a 26% tax on Indian products, have prompted Apple to seek alternatives for its hardware production. Expanding Brazilian assembly operations, which benefit from a lower 10% import tax, may help the company avoid additional costs for consumers.

Sources indicate that Apple and its manufacturing ally, Foxconn, have secured certification to initiate assembly of the iPhone 16 in Brazil. This facility currently produces models iPhone 13, 14, and 15, with future expansion plans aimed at including iPhone 16 Pro, necessitating further investment and restructuring of operations.

The proposed expanded manufacturing activities in Brazil are designed to satisfy local demand and facilitate exports to the U.S. This strategy could allow Apple to navigate around a substantial segment of the new tariffs while ensuring that product pricing remains competitive.

In summary, Apple is actively seeking to expand its manufacturing capabilities in Brazil to mitigate the financial burden imposed by new U.S. tariffs on imports from China and India. By increasing assembly operations in a region with lower import taxes, Apple aims to maintain competitive pricing and meet both local and international demands effectively. This move underscores the company’s adaptive strategies in response to evolving trade policies.

Original Source: www.channelnews.com.au