Apple Contemplates Brazil Expansion to Dodge US Tariffs on iPhones

Apple Considers Expanding iPhone Assembly in Brazil

Apple is reportedly considering expanding its iPhone assembly operations in Brazil to mitigate the impact of new US tariffs on imports from China and India. The company, which has been assembling some entry-level iPhones in Brazil since 2011, is looking to increase production capacity at its facilities in São Paulo, in partnership with Foxconn. Brazilian telecom regulator Anatel recently certified Apple and Foxconn for assembling the iPhone 16, with plans to include the iPhone 16 Pro models as well.

By expanding manufacturing in Brazil, Apple aims to meet both local demand and export iPhones to the US at a lower tax rate compared to products imported from China (34%) and India (26%). The tariffs on Brazilian imports are set at 10%, making it an attractive option for the company. This move comes as Apple's shares have fallen by over 10% since the new tariffs were announced, resulting in a $300 billion loss in market value.