What an iPhone could cost in Trump’s America

Businesses and policymakers are bracing for what could happen under President-elect Donald Trump's trade agenda. President-elect Trump has promised to slap a tax on Chinese goods, possibly as high as 45 percent; he also has said that he will reinvigorate US manufacturing by bringing it home. What would this mean for the goods we buy?

It costs Apple $224.80 to manufacture an iPhone 7, and that doesn't include the cost of R&D, marketing and distribution. A federal markup of 45 percent could drive up that price by more than $100. Apple could keep its retail price for a basic iPhone at $650, but the decision would cut significantly into its margins. Apple declined to comment on whether a tariff would lead to higher prices, saying in a statement that “Apple is responsible for creating more than two million jobs across the United States, from engineers, retail and call center employees to operations and delivery drivers. We work with over 8,000 suppliers from coast to coast and are investing heavily in American jobs and innovation.”