Apple may expand iPhone production to Brazil to avoid US tariffs: report

Apple is considering increasing iPhone assembly in Brazil to reduce the impact of new US tariffs on Chinese imports, according to a recent report by Apple-centric news platform 9to5Mac. US President Donald Trump recently announced steep tariffs on goods from several countries, including a 34% levy on Chinese products—a major concern for Apple, which manufactures most of its devices in China.
As per 9to5Mac, sources familiar with the matter told the Brazilian magazine Exame that Apple has been exploring ways to expand its production facilities in Brazil, where it already assembles entry-level iPhones through a partnership with Foxconn. The move could help Apple lower costs, as imports from Brazil face only a 10% US tariff—far less than those from China (34%) or India (26%).
Brazil's telecom regulator, Anatel, recently certified Apple and Foxconn to produce the iPhone 16 locally, alongside existing assembly of the iPhone 13, 14, and 15, states the 9to5Mac report. The report also suggests Apple may even begin manufacturing iPhone 16 Pro models in Brazil for the first time. If successful, the Brazil-made iPhones could not only supply the local market but also be exported to the US, reducing Apple's tax burden.
The tariffs have already hit Apple's stock, which has dropped over 10%, wiping out $300 billion in market value. Other US tech giants like Nvidia have also seen declines. By shifting more production to Brazil, Apple hopes to mitigate financial losses while navigating the escalating trade tensions.
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