Priyanka Tiwari
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Amid growing trade tensions and newly announced tariffs by the US, Apple is reportedly considering expanding its iPhone assembly operations in Brazil. The move follows President Trump's decision to impose new import levies on goods from countries like China and India — key locations in Apple’s current manufacturing network.
Production in São Paulo Facility Could Scale Up
According to Brazilian outlet Exame, Apple is planning to increase output at its São Paulo facility, operated with manufacturing partner Foxconn. While the facility has been producing entry-level iPhones for the local market since 2011, Apple now appears to be preparing it for global exports — including to the US.
New Models May Be Built in Brazil
Brazil’s telecom authority Anatel recently approved the local assembly of the iPhone 16. Apple already assembles the iPhone 13, 14, and 15 in Brazil, but now may include the higher-end iPhone 16 Pro in the production lineup. Equipment upgrades and updated production processes have been underway at the site since last year.
Tariff Advantage Favors Brazil
The incentive for Apple is clear. US tariffs on Chinese iPhones stand at 34%, while Indian-made models face a 26% duty. In comparison, Brazilian-assembled devices would attract only a 10% tariff. Trump has said the new tariff rates reflect how these countries tax American goods.
By increasing output in Brazil, Apple could reduce its dependency on China and India, both of which are now facing higher export costs to the US.
Strategic Diversification of Apple’s Supply Chain
Apple has already shifted significant iPhone assembly to India in recent years. Now, the new US trade policy could open Brazil as another key production hub. The company’s strategy appears aimed at diversifying its supply chain and minimizing exposure to geopolitical and economic risks.
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