Supply Chain & Procurement worked example

Tariff Impact Calculator at 92% effective tariff rate: a worked example

What does the result look like when effective tariff rate reaches 92%? The full calculation is worked below with real intermediate numbers. Use it when tariff impact in supply chain and procurement is being put through a supply chain and procurement weighted-cost review.

The inputs for this scenario

  • Annual import units: 100 units / yr (unchanged)
  • Customs value per unit: 45 $ / unit (unchanged)
  • Effective tariff rate: 92 % (raised for this scenario; the documented default is 80)
  • Brokerage and bond cost: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Weighted cost = quantity × rate × capture factor + fixed adjustment) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total tariff impact cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for tariff impact cost per unit.
  • At this operating point the engine returns 4,140 $ for variable tariff impact cost.
  • At this operating point the engine returns 250 $ for fixed tariff impact adder.

How this compares with the baseline

  • Against the tool's baseline example, where effective tariff rate sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • A figure at this level is achievable when effective tariff rate is genuinely sustained, not just peaked for a shift. It's a planning estimate; actual duty depends on HTS classification, country of origin rules, and exclusions that this simplified model doesn't adjudicate.

Results at a glance

  • Total tariff impact cost: 4,390 $ (headline result)
  • Tariff impact cost per unit: 43.9 $ / piece
  • Variable tariff impact cost: 4,140 $
  • Fixed tariff impact adder: 250 $

Run it with your numbers

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

Last reviewed 2026-05-12.