Donald Trump’s introduction of higher tariffs on imports from a number of countries will ultimately hit many American companies. Among them is Apple, since most of its products come from China, 9to5Mac reports. Apple’s management is currently discussing possible solutions to the problem. In particular, the company is considering the option of expanding iPhone assembly in Brazil, which will allow it to pay lower tariffs.
Apple is exploring the possibility of increasing the production capacity of its iPhone assembly plant in Brazil, informed sources told Brazilian magazine Exame. The U.S. government has set a tariff of 34% on products imported from China. Products from India, where iPhones are also assembled, face a 26% tariff. And the Trump administration has set a tariff of just 10% on products from Brazil.
Apple built a small factory in Sao Paulo in 2011 in partnership with Taiwan’s Foxconn. It assembles only a few devices, such as entry-level iPhones, intended for the local market. According to sources, the company plans to expand the range of iPhone models assembled in Brazil in the near future.
«The possibility of expanding production in Brazil began to be considered last year, with the modernization of equipment and industrial processes,” the Exame publication says. If production capacity in the country is increased, iPhones assembled here will not only be able to meet the needs of the local market, but also be exported to the United States, which will allow Apple to reduce the tax burden.