Tariff Surcharge Impact Calculator

Tariffs raise imported material cost.

Imported material cost

Tariff rate %

Domestic substitution %

Domestic premium %

Net cost impact

$696,500

Tariff on remaining imports

$612,500

Domestic premium cost

$84,000

How the math works

Remaining import × tariff + domestic portion × premium = net cost impact.

70% × $3.5M × 25% = $613k tariff + 30% × $3.5M × 8% = $84k domestic premium = $697k net.

How to Use

Enter imported material cost.
Enter tariff rate %.
Enter domestic substitution %.
Read net tariff cost.

Frequently Asked Questions

Material exposure?

Steel: 20-30% imported for mid-size US construction. Aluminum: 30-50% imported. Lumber: 15-25% from Canada. Drywall: 10-20% imported. Copper/brass: 40-60%. Wide range; specific to project and supplier.

Tariff impact magnitude?

25% steel tariff on 25% import mix = 6.25% material cost increase on steel. On $10M steel = $625k added. Project typically 10-15% steel content → 0.6-0.9% total project cost. 2018 tariffs added 3-8% to many commercial projects.

Mitigation?

Source domestic alternatives (typically 5-15% premium before tariff). Pre-purchase + store (inventory cost). Tariff exemption applications (specialty products). Contractual tariff escalation clauses. Each has cost and complexity.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.