Apple Inc. may expand its operations at Foxconn’s Jundiai factory in Brazil to alleviate rising production costs due to new tariffs from President Trump affecting suppliers in China and India. Brazil’s 10% export duties to the U.S. make it an attractive alternative, as Apple shifts focus amid increasing financial pressures.
Apple Inc. is reportedly contemplating an expansion at the Foxconn manufacturing facility located in Jundiai, Sao Paulo, to mitigate increasing production expenses in Asia. This consideration arises amid new tariffs imposed by United States President Donald Trump on key Apple suppliers operating in China and India, as reported by Brazilian Exame magazine.
At present, more than half of Apple’s smartphone shipments are sourced from China, which is currently facing significant reciprocal tariffs that were implemented on April 2. In addition to this, China has recently enacted a substantial 34% tariff, while India is similarly affected, as it will implement a 26% levy on production starting in 2024 through 2025.
Foxconn’s facility in Jundiai has been a long-standing collaborator with Apple, currently assembling basic models of the iPhone 13 to iPhone 15, and has recently been authorized to manufacture the upcoming iPhone 16. Brazil benefits from comparatively lower duties; the country imposes a modest 10% duty on its exports to the United States, rendering it an appealing option for Apple.
In summary, Apple’s potential expansion at the Foxconn facility in Brazil is a strategic response to rising production costs and new tariffs imposed in Asia. With significant tariffs affecting operations in China and India, Brazil’s more favorable export duties position it as a viable alternative for Apple’s manufacturing needs. This move could play a crucial role in Apple’s operational strategy moving forward.
Original Source: breakingthenews.net
