Apple Inc. is considering expanding its Jundiai, Brazil factory to offset rising production costs due to U.S. tariffs on its suppliers in China and India. With over half of its smartphones produced in China facing high tariffs, this expansion could ensure continued production and alignment with favorable trade duties in Brazil.
Apple Inc. is reportedly contemplating an expansion of its operations at the Foxconn factory located in Jundiai, Sao Paulo, Brazil. This decision is aimed at mitigating the rising production costs in Asia, particularly in light of new tariffs imposed by U.S. President Donald Trump on key Apple suppliers in China and India, according to a report by Brazilian Exame magazine.
Currently, more than fifty percent of Apple’s smartphone shipments are sourced from China, which has recently implemented significant tariffs, including one of 34% in retaliation to U.S. tariffs introduced on April 2. India is also facing challenges as it deals with a 26% tax, even while doubling its device production between 2024 and 2025.
The Foxconn facility in Jundiai has a long-standing partnership with Apple and is already responsible for assembling base models of the iPhone 13 through 15. It has also been recently authorized to manufacture the upcoming iPhone 16. Brazil offers a more favorable trade environment with a comparatively low 10% duty on exports to the U.S., positioning it as an attractive alternative for Apple’s production needs.
In summary, Apple Inc. is exploring the possibility of expanding its Brazilian operations at the Foxconn factory in response to escalating production costs in Asia due to new U.S. tariffs. This strategy reflects a shift in the company’s supply chain management to better accommodate the challenges posed by tariffs in China and India, thereby considering Brazil as a viable manufacturing option.
Original Source: breakingthenews.net
