Apple plans to expand manufacturing in Brazil to counteract U.S. tariffs on Chinese and Indian imports. This initiative is in response to a 34% tariff on Chinese goods and a 26% tariff on Indian imports. The Brazilian assembly’s 10% import tax offers a cost-effective solution, enabling production of future iPhone models while maintaining competitive pricing and market access.
Apple is contemplating an expansion of its manufacturing presence in Brazil to mitigate the effects of recently imposed U.S. tariffs on imports from China and India. This decision follows the Trump Administration’s announcement of tariffs: 34% on Chinese goods and 26% on Indian imports, impacting crucial markets for Apple’s hardware production.
To avoid increasing consumer prices, Apple aims to enhance its assembly operations in Brazil, where the import tax stands at a significantly lower rate of 10%. Reports indicate that Apple and its manufacturing partner, Foxconn, have already secured certification to commence assembling the iPhone 16 in Brazil.
Currently, the Brazilian facility focuses on the production of the iPhone 13, 14, and 15. The planned expansion will include the iPhone 16 Pro, necessitating additional investments and structural adjustments. These expanded operations are designed to cater to local demand and facilitate exports to the U.S., thereby allowing Apple to effectively bypass a considerable portion of the new tariffs while maintaining competitive pricing.
Apple’s proposed expansion into Brazil aims to counter U.S. tariffs on Chinese and Indian imports by shifting manufacturing operations. By increasing its assembly capabilities in Brazil, the company intends to keep consumer prices stable and ensure competitive market positioning. The collaboration with Foxconn for the production of new iPhone models further demonstrates Apple’s strategic approach to global supply chain management amidst tariff pressures.
Original Source: www.channelnews.com.au
