Apple May Increase Making Apple Products in Brazil to Avoid Expensive iPhones Due to US Tariffs

Apple may expand its manufacturing facilities in Brazil to offset Trump Administration taxes on Chinese and Indian imports. This strategy may help Apple maintain competitive pricing in the US, according to sources.

The new US tariffs charge Chinese and Indian goods 34% and 26%, respectively. Apple manufactures in China and India, so these tariffs might hike expenses. Apple may be boosting manufacturing in Brazil, where import duties are 10%, rather than passing these costs on to customers.

Growth Already Underway
Apple allegedly planned the expansion in 2024. The business has received approval to assemble the iPhone 16 in Brazil alongside Foxconn, according to sources. Apple plans to construct the iPhone 16 Pro in its Brazilian facility, which presently makes the iPhone 13, 14, and 15. This may need facility reconfiguration and new manufacturing lines.

Export Strategy to Reduce Impact

Apple wants to fulfill South American demand and export some of its manufacturing to the US by boosting manufacture in Brazil. This would enable the corporation to avoid most of the new tariffs, improving supply chains and pricing stability in its major market.

Although Apple has not commented, the probable strategic change highlights how geopolitical and economic factors are changing global tech production.