Whether you’re thrilled or terrified by Donald Trump’s actions so far as president, there’s no doubt the nation’s 45th commander in chief will have a significant impact on the economy. Trump’s economic message — namely that he would bring back jobs and support businesses — helped get him elected. Now, we’re going to see whether he makes good on his promises to help American workers.
But the job market isn’t the only part of the economy where Americans might feel a Trump effect. The stock market rallied after the election, and the streak has kept going into 2017, for the most part. That’s positive news for investors, though not everyone is convinced the good times will last. Businesses are excited about the prospect of corporate tax cuts, and more optimistic consumers might increase their spending. Individual taxpayers might have to send less of their money to the IRS. And pulling back on regulations might lower prices for consumers and save jobs.
All that sounds like pretty good news. But some people aren’t so sure the economic future will be rosy under Trump. His pick for secretary of labor is a critic of the minimum-wage increases and efforts to expand overtime pay, which has dismayed living-wage advocates. Others are concerned about the possible effect of deporting millions of immigrants or raising tariffs on Chinese-made products on the economy.
Early signs indicate Trump is more than willing to follow through on some of his big promises to his supporters. Assessing the economic fallout from executive actions on issues, such as the border wall and immigration, might take time. Nonetheless, we can makes predictions for how Trump might affect your bottom line based on his early moves as president as well as his campaign pledges. Here are nine things that could get more expensive — at least for some people — in Donald Trump’s America.
1. Your iPhone
Trump has promised to slap a 35% or 45% tariff on Chinese-made goods. If that happens, it could mean higher prices on products, including your beloved iPhone. A 45% tariff could drive up the retail price of an iPhone by $100, The Washington Post estimated.
But even if Trump does impose tariffs — and there’s no guarantee he will — they might not be as steep as promised. A tariff of 15% is more likely, according to Business Insider. That would mean smaller price increases for U.S. shoppers, but they’d still probably end up paying more.
“In general, if tariffs go up by 15%, we tend to find that prices go up, but not usually entirely by 15%,” Columbia economics professor Amit Khandelwal told Business Insider. “But it’s reasonable to expect that prices would go up a sufficient amount.”