Apple Inc. Eyes Factory Expansion in Brazil to Counteract Asia Tariffs

Apple Inc. is considering expanding its Jundiai factory in Brazil to manage rising production costs due to tariffs impacting suppliers in China and India. The Brazilian facility currently assembles various iPhone models and offers a favorable export duty to the United States.

Apple Inc. is reportedly contemplating the expansion of its operations at the Foxconn factory located in Jundiai, Sao Paulo, in a bid to mitigate rising production costs in Asia. A recent report by Brazilian Exame magazine indicates that this strategic move aims to counteract the effects of new tariffs imposed by former United States President Donald Trump, which have significantly impacted major Apple suppliers in China and India.

At present, more than fifty percent of Apple’s smartphone shipments are sourced from China, which faced heightened tariffs on April 2, as well as a 34% retaliatory duty. India also recently doubled its device production goals for 2024 to 2025, but will encounter a 26% levy that could affect its operational costs.

Foxconn’s Jundiai operation has a longstanding partnership with Apple, assembling base models of the iPhone series from 13 to 15, and has recently obtained approval to start manufacturing the iPhone 16. Additionally, Brazil benefits from a relatively modest 10% duty on exports to the United States imposed by Trump, rendering it an attractive alternative for Apple as it seeks to navigate the complexities of ongoing tariffs.

In conclusion, Apple Inc.’s potential expansion in Brazil at the Foxconn factory is a strategic response to rising production costs driven by tariffs impacting operations in Asia. This move could position Apple to reduce its dependency on Chinese manufacturing while leveraging a more favorable export duty in Brazil, ultimately enhancing its operational resilience amidst global trade challenges.

Original Source: breakingthenews.net