Reshoring & Tariff Strategy worked example

Tariff Burden Estimator at 12% setup, handling, and delay allowance: a worked example

Push setup, handling, and delay allowance up to 12% and the picture changes. This example computes every intermediate figure at that operating point. Use it when tariff burden in reshoring and tariff strategy needs a defensible run time before a quote goes out.

The inputs for this scenario

  • Tariff burden workload: 120 units (unchanged)
  • Tariff burden completion rate: 12 units / min (unchanged)
  • Setup, handling, and delay allowance: 12 % (raised for this scenario; the documented default is 10)

Working through the calculation

  • Applying the documented formula (Base tariff burden time = tariff burden workload รท tariff burden completion rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 11.2 hr for required tariff burden time, the number this scenario is built around.
  • At this operating point the engine returns 10 hr for base tariff burden time.
  • At this operating point the engine returns 12 % for tariff burden allowance applied.
  • At this operating point the engine returns 12 pieces / min for tariff burden completion rate.

How this compares with the baseline

  • Against the tool's baseline example, where setup, handling, and delay allowance sits at 10% and the headline result is 11 hr, this scenario comes in 1.82% above the baseline at 11.2 hr.
  • Computes required processing hours by dividing the workload by a per-minute completion rate and then inflating the result by a setup, handling, and delay allowance. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Required tariff burden time: 11.2 hr (headline result)
  • Base tariff burden time: 10 hr
  • Tariff burden allowance applied: 12 %
  • Tariff burden completion rate: 12 pieces / min

Run it with your numbers

  • Every input above is editable in the live Tariff Burden Estimator calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.