Apple Considers Expanding Brazil Factory to Mitigate Tariffs on Production Costs

Apple Inc. is evaluating the expansion of its factory in Brazil to mitigate rising production costs from tariffs impacting suppliers in Asia, particularly in China and India. The Jundiai facility is a strategic asset due to its current manufacturing capabilities and favorable tariff structure.

Apple Inc. is reportedly exploring an expansion of its Foxconn factory in Jundiai, Sao Paulo. This strategic move aims to mitigate the rising production costs associated with tariffs imposed on suppliers in Asia, as highlighted in a report by Brazilian Exame magazine. These tariffs, initiated by United States President Donald Trump, have begun to impact major Apple suppliers located in China and India.

Presently, more than fifty percent of Apple’s smartphone shipments come from China, a country that has recently faced significant tariffs, including a 34% reciprocal duty introduced on April 2. Additionally, India has announced a 26% levy, further complicating the situation as the country anticipates doubling its device production by 2025.

The Jundiai facility, a longstanding collaborator with Apple, assembles various models of the iPhone and has recently been authorized to produce the iPhone 16. Notably, Brazil enjoys a relatively modest 10% duty on exports to the United States under Trump’s administration, positioning it as a compelling alternative for Apple’s manufacturing needs.

In summary, Apple Inc. is considering an expansion at the Foxconn factory in Brazil to counter rising production costs due to tariffs affecting its supply chains in Asia. With significant operations concentrated in China and India, the company seeks to leverage Brazil’s more favorable tariff rates to maintain production efficiency and competitiveness.

Original Source: breakingthenews.net