Apple is reportedly preparing to expand its manufacturing operations in Brazil, aiming to reduce the impact of recently announced tariffs by the Trump Administration on Chinese and Indian imports. Sources familiar with the matter shared that this move could help Apple maintain competitive pricing in the US market.
The new US tariffs impose a 34% tax on Chinese imports and a 26% tax on Indian imports. Given that China and India are key manufacturing hubs for Apple, these levies could significantly raise costs. Instead of passing these expenses onto consumers, Apple appears to be pursuing an alternative strategy — increasing production in Brazil, where import taxes are considerably lower at 10%.
Apple reportedly began planning the expansion in 2024. According to insiders, the company has already secured certification to begin assembling the iPhone 16 in Brazil in partnership with Foxconn. Apple currently produces the iPhone 13, 14, and 15 at its Brazilian plant but intends to expand its output to include the iPhone 16 Pro. Doing so will likely involve restructuring the facility and investing in new production lines.
By expanding production in Brazil, Apple not only plans to meet domestic demand in South America but also aims to export part of the output to the US. This would allow the company to bypass a significant portion of the new tariffs, maintaining smoother supply chains and price stability in its largest market.
While Apple has not officially commented on the move, its potential shift in strategy shows how geopolitical and economic pressures are reshaping global tech manufacturing.