Reshoring & Tariff Strategy worked example

Nearshoring Landed Cost at 21% duty and freight uplift: a worked example

This scenario runs the nearshoring landed cost calculation on the strong side: 21% duty and freight uplift, with every other input held at its documented default. A buyer evaluating a Mexico or Eastern-Europe supplier needs the door-to-door landed cost, not just the quoted ex-works price.

The inputs for this scenario

  • Annual units imported: 40,000 units/yr (unchanged)
  • Landed cost per unit: 6.5 $/unit (unchanged)
  • Duty and freight uplift: 21 % (raised for this scenario; the documented default is 18)
  • Cross-border setup cost: 22,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Annual landed cost ($) = units imported x landed cost per unit x duty/freight uplift% + cross-border setup) to the inputs above produces each figure below.
  • At this operating point the engine returns 76,600 $ for total nearshoring landed cost, the number this scenario is built around.
  • At this operating point the engine returns 1.92 $ / piece for nearshoring landed cost per unit.
  • At this operating point the engine returns 54,600 $ for variable nearshoring landed cost.
  • At this operating point the engine returns 22,000 $ for fixed nearshoring landed cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where duty and freight uplift sits at 18% and the headline result is 68,800 $, this scenario comes in 11.34% above the baseline at 76,600 $.
  • Use it when comparing a nearshore supplier quote against your current overseas source, or when sizing the volume needed to absorb cross-border setup investment. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total nearshoring landed cost: 76,600 $ (headline result)
  • Nearshoring landed cost per unit: 1.92 $ / piece
  • Variable nearshoring landed cost: 54,600 $
  • Fixed nearshoring landed cost adder: 22,000 $

Run it with your numbers

  • Every input above is editable in the live Nearshoring Landed Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.