Apple Considers Brazil Expansion Amid Tariff Hikes

In a strategic move to counter increasing production costs in Asia, Apple Inc. is reportedly eyeing an expansion of its operations at the Foxconn factory located in Jundiai, Sao Paulo. This development, as highlighted by a recent Brazilian Exame magazine report, is a direct response to the new tariffs imposed by United States President Donald Trump, which have significantly impacted Apple's major suppliers in China and India.

Global Tariff Impacts on Apple's Supply Chain

With more than half of Apple's smartphone shipments originating from China, the country has been hit hard by reciprocal tariffs, including a recent 34% hike. Similarly, India, which has seen a doubling in device production from 2024 to 2025, is now facing a 26% levy. These developments have prompted Apple to explore alternative manufacturing locations to mitigate the financial strain.

Brazil: A Viable Alternative for Apple

The Foxconn facility in Jundiai, a longstanding partner of Apple, currently assembles base models of the iPhone 13 through 15 and has recently been approved for iPhone 16 production. Brazil's relatively lower 10% duties on exports to the U.S. make it an attractive option for Apple as it seeks to navigate the challenging tariff landscape.