Unnamed Foxconn sources said that US President Donald Trump's plans to tax imports more in order to encourage local production in the US led Foxconn to change its strategy. In addition, the economic crisis, the political instability and the low productivity of the Brazilian labour force contributed to the decision to halt production.
Foxconn denied the report in a press statement, saying it will maintain its normal operations in Brazil, "despite the economic and political crisis that currently affecting Brazil".
Separately, AP reports that Taiwan-based Foxconn is considering opening its first plant in the US. Wisconsin and Michigan are in the running for the new factory, a source familiar with the matter said. At an election rally in Milwaukee for the Wisconsin governor, Trump said he had been "negotiating with a major, major incredible manufacturer of phones and computers and televisions, and I think they’re going to give the governor a very happy surprise".
