Apple might expand its manufacturing facility in Brazil to avoid high tariffs

According to sources familiar with the matter, Apple is planning to expand its manufacturing facility in Brazil in an attempt to avoid the newly imposed tariffs on China by the Trump Administration.

Trump's newly announced tariffs include 34% on Chinese imports and 26% on Indian, two crucial markets for Apple hardware. This means that Apple will be forced to pay higher taxes and transfer that to its customers. To mitigate those high tariffs, the company is considering expanding its assembly facility in Brazil since the country faces only a 10% import tax.

Reportedly, Apple started making plans in 2024 and has already received the necessary certification so that Apple and Foxconn can assemble the iPhone 16. The Cupertino-based company has manufactured the iPhone 13, 14, and 15 in its Brazilian plant, but it plans to expand production with the iPhone 16 Pro. This would require some restructuring and investment.

This way, Apple will not only meet the local demand, but also export some of the production to the US, avoiding a big chunk of the tariffs.

Source (in Portuguese)

Apple iPhone 16

Apple iPhone 16 Pro