Apple plans to expand its manufacturing facility in Brazil to avoid new tariffs on Chinese imports imposed by the Trump Administration, which include a 34% tariff on China and 26% on India. The Brazilian import tax is only 10%, offering a financial advantage. Apple has been making plans since 2024 and is set to manufacture the iPhone 16 Pro with a necessary certification obtained for collaboration with Foxconn. This expansion will allow Apple to meet local demand and export some production to the U.S., thus mitigating the impact of the tariffs.
Sources close to the situation indicate that Apple is set to enhance its manufacturing plant in Brazil to circumvent the recently introduced tariffs on imports from China by the Trump Administration.
The newly implemented tariffs by Trump impose a 34% tax on Chinese imports and a 26% tax on those from India, both of which are vital markets for Apple’s hardware. As a result, Apple would face increased costs, which it would need to pass on to its customers. To alleviate these high tariffs, the company is contemplating the expansion of its assembly operations in Brazil, where the import tax is only 10%.
Reports suggest that Apple initiated plans in 2024 and has already obtained the required certifications for Apple and Foxconn to assemble the iPhone 16. The company, based in Cupertino, has produced the iPhone 13, 14, and 15 in its Brazilian facility, but now intends to scale up production for the iPhone 16 Pro, necessitating some investment and structural adjustments.
This strategy would allow Apple to not only cater to local demand but also export part of its production to the US, thus avoiding a significant portion of the tariffs.
Source (in Portuguese)