Apple Considers Factory Expansion in Brazil to Counter Tariffs on Production

Apple Inc. is considering expanding its operations at Foxconn’s Jundiai factory in Brazil due to rising production costs in Asia from new tariffs. Over half of Apple’s smartphone shipments come from China, which faces significant tariffs, while India will similarly be affected. The Jundiai facility has been a longstanding partner for assembly, and Brazil’s 10% export duty makes it an attractive option for Apple.

Apple Inc. is reportedly contemplating the expansion of its operations at the Foxconn facility located in Jundiai, Sao Paulo. This strategic move aims to mitigate the rising production costs in Asia due to newly imposed tariffs by the United States. According to a report from Brazilian Exame magazine, this expansion is particularly pertinent following the recent tariff increases on major Apple suppliers in China and India.

Currently, more than fifty percent of Apple’s smartphone shipments are sourced from China. This region has faced significant tariffs since April 2, and recently, China imposed its own retaliatory tariff of 34%. Furthermore, India, which is experiencing a doubling of its device production aimed for the years 2024 to 2025, will also incur a 26% tariff.

The Foxconn facility in Jundiai has been a longstanding partner of Apple, assembling the base models of the iPhone 13, iPhone 14, and iPhone 15. It has also received authorization to begin production of the iPhone 16. Additionally, Brazil benefits from a comparatively low export duty of 10% to the United States under President Trump’s administration, thereby establishing it as an attractive alternative for Apple’s manufacturing needs.

In conclusion, Apple Inc. is evaluating the expansion of its Jundiai facility to counteract escalating costs in Asia due to tariffs. With over half of its smartphones shipped from China facing substantial levies, and India imposing additional tariffs, Brazil presents a feasible alternative with its favorable export conditions. This strategic shift could enhance Apple’s supply chain resilience amid changing trade policies.

Original Source: breakingthenews.net