This week, President Trump unveiled a new set of tariffs on imported goods from foreign countries, which will significantly impact various U.S. companies, including Apple, as a large portion of its products are sourced from China. In response, Apple is reportedly exploring the option to increase iPhone assembly in Brazil to mitigate the effects of these U.S. tariffs.
Apple’s Plans for Increased iPhone Assembly in Brazil
According to insiders quoted by Brazilian magazine Exame, Apple is evaluating the expansion of its assembly capacity in Brazil to benefit from reduced import taxes on iPhones.
Apple has been engaged in product assembly in Brazil since 2011, partnering with Taiwanese firm Foxconn to establish a facility in São Paulo. However, due to its limited capacity, only a small number of devices, primarily entry-level iPhones, are produced for the local market. The report indicates that Apple aims to increase the variety of iPhone models assembled in Brazil in the near future.
“The exploration of expanding manufacturing operations in Brazil began last year, focusing on enhancing machinery and production processes,” the report states.
Brazil’s telecommunications regulator, Anatel, recently approved Apple and Foxconn Brazil for the assembly of the iPhone 16. Previous models including the iPhone 13, iPhone 14, and iPhone 15 have also been assembled in Brazil, with the report suggesting that Apple aims to produce the iPhone 16 Pro models there for the first time.
If successful, iPhones produced in Brazil would satisfy local demand and be available for export to the U.S., leading to substantial tax savings for Apple.
The U.S. government has imposed a 34% tax on products imported from China, while India, which also manufactures iPhones for global export, faces a 26% tariff. In contrast, Brazil’s tariffs under Trump’s administration are set at only 10%. The President asserts that these tariffs represent “reciprocal” measures relative to what other countries impose on U.S. imports.
Since the announcement of the new tariffs, Apple’s stock has fallen by over 10%, resulting in a $300 billion decrease in its market value. Other U.S. companies, including Nvidia, have experienced similar declines. Furthermore, this announcement has led Nintendo to postpone the U.S. launch of its Switch 2 due to uncertainty regarding tariffs.
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