Tariff & Import Duty Calculator
A 10% tariff doesn't just add 10% to the consumer price — it cascades through the entire supply chain.
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CIF value (cost+shipping)$115.00
+ Import duty (10%)+$11.50
Landed cost$126.50
+ Retailer markup (50%)+$63.25
Pre-tax retail price$189.75
+ VAT/Sales tax (20%)+$37.95
Consumer Pays$227.70
The 10% tariff adds $27.70 (+12.2%) to the final consumer price
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Why a 10% Tariff Adds More Than 10% to Consumer Price
A tariff is applied to the landed cost (product + shipping). But because retailers add markup after the tariff, and then VAT/tax is applied on the higher retail price, the tariff cascades and amplifies through the supply chain.
Consumer impact = Tariff% × (1 + Markup%) × (1 + VAT%)
A 10% tariff with 50% markup and 20% VAT creates an 18% increase in consumer price — nearly double the tariff rate itself.
Common Tariff Rates by Product Category
| Category | US Rate | EU Rate | Notes |
|---|---|---|---|
| Electronics | 0-5% | 0-6% | Many under ITA zero |
| Clothing | 12-32% | 12% | Among the highest rates |
| Automobiles | 2.5% | 10% | EU rate 4× higher |
| Steel/Aluminum | 25%/10% | Varies | Section 232 tariffs |
| Food/Agriculture | 5-20% | 10-40% | Highly protected sector |
| Furniture | 0-6% | 0-5.6% | Relatively low |
Key Trade Terms
FOB (Free On Board): Product cost at the port of origin. Seller's responsibility ends here.
CIF (Cost, Insurance, Freight): Product + shipping + insurance to the destination port. Duties are calculated on CIF value.
Landed Cost: CIF + duties + handling. This is your true cost before markup.
Frequently Asked Questions
The importing company pays the tariff to their own government at customs. In practice, the cost is shared between the exporter (lower prices), importer (lower margins), and consumer (higher prices) depending on market power.
When country A imposes a 10% tariff on country B's goods, country B often retaliates. Consumers in both countries end up paying more, while trade volumes decrease.
A TRQ allows a certain quantity of imports at a low tariff rate. Once the quota is exceeded, additional imports face a much higher tariff — sometimes 100%+ for agricultural products.
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