Apple Considers Factory Expansion in Brazil to Mitigate Tariffs from Asia
Apple Inc. is considering expanding operations in Brazil to counter rising production costs from new tariffs affecting its Asian suppliers, particularly in China and India. The Jundiai Foxconn factory is a key focus due to its established partnership with Apple and reduced export duties to the US.
Apple Inc. is reportedly contemplating expanding its operations at the Foxconn factory located in Jundiai, Sao Paulo, to mitigate rising production costs in Asia. A recent report from Brazilian Exame magazine indicates that this initiative is a response to the new tariffs imposed by United States President Donald Trump, which significantly impact major Apple suppliers in China and India.
Presently, more than half of Apple’s smartphone shipments are sourced from China, which is facing substantial reciprocal tariffs as of April 2. Additionally, China has enacted a 34% tariff response, while India, which has recently increased its device production projections for 2024 to 2025, will contend with a 26% levy.
Foxconn’s Jundiai facility, an established partner of Apple, is currently engaged in the assembly of the iPhone 13 through to the iPhone 15 and has received clearance to commence manufacturing the iPhone 16. The tariffs imposed by Trump offer Brazil a modest 10% duty on exports to the US, positioning it as a feasible alternative for the tech giant.
In summary, Apple Inc. is exploring the expansion of its operations in Brazil at the Foxconn factory in response to increasing production costs due to tariffs affecting its suppliers in Asia. With significant tariffs from both China and India, Brazil emerges as a promising option due to more favorable export duties, allowing Apple to continue meeting its production demands efficiently.
Original Source: breakingthenews.net
