Ever Trend Zone This week, President Trump announced a series of tariffs imposed on imports of products from other countries. Now it appears that Apple is considering expanding its Brazilian iPhone assembly to avoid US tariffs.
Apple assembling more iPhones in Brazil
A source familiar with the issue told Brazil magazine test Its Apple is considering expanding the capabilities of its Brazilian facilities as a way to pay for lower iPhone import operations.
Apple has been assembled products in Brazil since 2011. The company worked with Taiwanese company Foxconn to build the facility in Sao Paulo. However, due to its small capacity, Brazilian assembled products such as entry-level iPhones are sourced to local markets. According to the report, Apple hopes to build more iPhone models in Brazil in the near future.
“The possibility of expanding manufacturing in Brazil began to be studied last year with upgrades to machinery and industrial processes,” the report said.
Anatel, a Brazilian telecom regulator, recently granted Apple and Foxconn Brazil the certification required to assemble an iPhone 16 in Brazil. The iPhone 13, iPhone 14, and iPhone 15 are already assembled domestically. The report suggests that Apple is looking to assemble the first iPhone 16 Pro model in Brazil.
If Apple succeeds, the iPhone assembled in Brazil will not only meet local demand, but will be exported to the US. For Apple, this will significantly lower taxes.
The US government will tax products imported from China by 34%. India, which assembles iPhones exported to other parts of the world, is also slapped at 26% tariffs. In Brazil, Trump’s tariffs are only 10%. The President argues that tariffs are “mutual” to what countries have already charged for products imported from the United States.
Apple’s shares have already plummeted more than 10% since the new tariffs were announced. The company has lost its market value of $300 billion so far. The same thing happened to other US companies such as Nvidia. With this announcement, Nintendo has pushed the US to refrain from launching the Switch 2, citing uncertainty about tariffs.
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