Apple Considers Manufacturing Expansion in Brazil to Mitigate U.S…

Apple is considering expanding its manufacturing in Brazil to counter U.S. tariffs on imports from China and India. The company aims to avoid passing costs onto consumers by utilizing Brazil’s lower import tax. This expansion includes the assembly of the iPhone 16 and aims to meet local demand and facilitate exports to the U.S.

Apple is exploring the possibility of expanding its manufacturing operations in Brazil to mitigate the effects of recently implemented U.S. tariffs on imports from China and India. This strategic decision follows the Trump Administration’s announcement of a 34% tariff on Chinese products and a 26% tariff on Indian imports, which are vital for Apple’s hardware production.

To prevent transferring increased costs to consumers, Apple aims to enhance its assembly operations in Brazil, where a more favorable 10% import tax is applied. Reports indicate that Apple and its partner, Foxconn, have received the necessary certifications to commence the assembly of the iPhone 16 in Brazil.

Currently, the facility is responsible for manufacturing the iPhone 13, 14, and 15, with plans for expansion to include the iPhone 16 Pro, requiring significant investment and restructuring. This growth will address local demand and enable exports to the U.S., potentially allowing Apple to avoid a substantial portion of the new tariffs while ensuring competitive pricing.

In summary, Apple’s potential expansion of manufacturing in Brazil is a strategic response to U.S. tariffs imposed on Chinese and Indian imports. By enhancing Brazilian assembly operations, Apple seeks to mitigate cost hikes and maintain competitive pricing while addressing both local and export demands. This development represents a significant move in Apple’s ongoing adaptation to the global trade landscape.

Original Source: www.channelnews.com.au