Apple may look at expanding production of iPhone in Brazil to dodge Trump tariffs

Apple iPhone

Amid rising trade tensions, Apple is reportedly exploring a significant expansion of its iPhone assembly operations in Brazil. The move comes as the US government, under President Trump, imposes a new wave of tariffs on imports from countries like China and India — both key hubs for Apple’s current manufacturing and assembly.

According to Brazilian publication Exame, Apple is considering scaling up production in its São Paulo facility, which it operates in partnership with Taiwanese manufacturer Foxconn. While Apple has been assembling iPhones in Brazil since 2011, production has largely been limited to entry-level models meant for the local market. That could be about to change, claims the report.

The report further notes that Apple has been upgrading equipment and production processes in Brazil since last year. Now, the company appears to be eyeing broader use of the facility — not just to serve Brazilian consumers, but also to export devices to the US

Earlier this year, Brazil’s telecom regulator Anatel gave Apple and Foxconn the green light to assemble the iPhone 16 locally. Brazil already assembles older models like the iPhone 13, 14, and 15, but for the first time, Apple may also produce iPhone 16 Pro models in the country.

The incentive is clear. With US tariffs on Chinese-made products set at 34% and Indian-made goods facing a 26% levy, Brazil’s comparatively modest 10% rate makes it an attractive alternative. Trump has justified the tariff differences by saying they mirror how these countries tax US imports.

If Apple follows through, Brazilian-assembled iPhones could soon make their way to the US market, helping the company reduce its exposure to steep import duties while diversifying its manufacturing base beyond China and India.

Apple already had stepped up assembly of iPhone in India in the last few years. But Trump tariffs could open up Brazil as another major option for the company.