# Apple Increases iPhone Manufacturing in Brazil Amidst Trade War Pressures
In light of the persistent trade conflict between the United States and China, prominent corporations like Apple are proactively exploring measures to alleviate the repercussions of tariffs enacted by the U.S. government. Recently, Apple has achieved notable progress by broadening its assembly operations in Brazil, where it is now assembling the latest iPhone 16e.
## iPhone 16e is Now Manufactured in Brazil
As reported by *MacMagazine*, Apple has been assembling the iPhone 16e in Brazil since its release. Traditionally, Apple would postpone local production of new iPhone models for a few months following their global debut. However, the company has now optimized its operations, enabling immediate assembly in Brazil.
Consumers buying the iPhone 16e in Brazil have observed the label “Assembled in Brazil – Brazilian Industry” on the box. This is further supported by Apple’s Brazilian online store, where the model number for the iPhone 16e concludes with “BR/A,” signifying local assembly. Conversely, iPhones brought in from other nations are labeled with “BE/A.”
Documents from Anatel, Brazil’s telecommunications authority, verify that the iPhone 16e is being assembled in Brazil as well as in China and India. The retail price for the iPhone 16e in Brazil is around $890, although it can be found for as low as $670 at different retailers. This price drop is probably linked to tariff exemptions associated with local production, particularly when compared to the initial price of $600 in the U.S.
## Strategic Initiatives to Bypass Tariffs
Apple’s choice to enhance its production capabilities in Brazil is part of a larger tactic to navigate the intricacies of global trade and tariffs. Reports suggest that Apple is contemplating a collaboration with Foxconn to further extend its facilities in Brazil. This strategy is especially pertinent given the recent announcements by the U.S. government concerning tariffs. While some tariff exemptions have been allowed, a White House document hinted that tariffs on Chinese goods could rise to as high as 245%. In retaliation, China has also increased tariffs on American products.
In contrast, products manufactured in Brazil are subject to only a 10% tariff, presenting a more advantageous option for Apple to import iPhones from Brazil instead of China. Before the enforcement of the tariffs, Apple allegedly relied on numerous flights to transport iPhones and other goods from India and China to the U.S.
## Conclusion
Apple’s expansion of its assembly activities in Brazil marks a significant alteration in its production approach, driven by the necessity to adapt to the changing dynamics of international trade. By localizing production, Apple not only alleviates the effects of tariffs but also bolsters its standing in the Brazilian market. As the trade war progresses, it will be intriguing to observe how other companies react and whether Apple will further diversify its production sites to preserve its competitive advantage.
In the interim, consumers in Brazil can take advantage of the perks of locally assembled iPhones, potentially resulting in more competitive pricing and enhanced availability of the latest technology.
