Concerned about tariffs?
Many small-business owners are under increased economic stress and uncertainty following the latest tariff announcements. NerdWallet is here to help you find answers for whatever you’re looking for. Here are some resources to help you get started:
How to use our tariff impact calculator
Step 1. Enter purchase and pricing details
Enter the following details to see how U.S. import tariffs are affecting your bottom line:
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Your cost per unit. The base price your supplier charges you for each unit.
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Quantity imported. Enter the total number of units you’re bringing into the country.
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Shipping cost. Include the total cost of transporting your goods from the supplier to your destination.
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Other costs. Add any additional expenses related to the shipment that aren’t already included, like insurance, packaging or handling fees.
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Tariff rate %. This is the percentage rate applied to the value of goods you’re importing. If you’re not sure what rate to use, check out online tariff trackers like this one from ReedSmith, a global law firm.
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Current sales price per unit. Enter the price you’re currently charging customers. This helps measure the impact of tariffs on your gross profit margin.
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Step 2. Review your results
Once you hit “calculate,” our tool generates the following numbers:
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Total tariff paid. This is the total amount you’ll pay in tariffs for the full shipment. It’s calculated by multiplying the tariff rate by the total value of goods you’re buying (minus shipping and other costs).
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Tariff per unit. The average tariff cost for each unit in your shipment. This helps you see how much the tariff is adding to your per-unit cost.
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Costs without tariff. This breaks down the total cost of the shipment, per-unit cost, gross margin and gross profit margin before tariffs are applied. This gives you a baseline to compare against the impact of tariffs.
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Costs with tariff. This shows you the total cost of the shipment, cost per unit, gross margin and profit margin after tariffs are applied. If your profit margin is significantly lower than expected, you may need to adjust your pricing.
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Desired gross profit margin. Select the gross profit margin you’d like to maintain after all costs of goods sold (including tariffs) are accounted for. This helps calculate a target sales price that preserves your profitability.
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Price needed to reach desired profit margin (after tariff). This is the new retail sales price you’d need to charge in order to maintain your desired gross profit margin once tariffs are accounted for. Use this figure to guide pricing decisions or negotiate better terms with your supplier.
🤓Nerdy Tip
To brace for unexpected disruptions to your business, like newly imposed import tariffs, small-business owners can turn to a business line of credit. Lines of credit allow you to access cash as needed and pay interest only on what you use, providing a lifeline when faced with sudden expenses or emergencies.
What are tariffs?
U.S. import tariffs are a type of tax the government charges companies on goods they bring into the country. They’re primarily used to generate revenue for the government and protect domestic companies from global competition. But they can also be used as a bargaining chip in international trade talks or to push other agendas.
How are tariffs calculated?
Most U.S. import tariffs are calculated as a percentage of the value of goods being brought into the U.S. This method is called, “ad valorem,” and is what our calculator uses. For example, if you purchase goods valued at $10,000, and the shipment is subject to a 25% tariff based on its country of origin, you’d be on the hook for a $2,500 tariff.
What to do if you’re hit with high tariffs
Eighty-five percent of small-business owners are worried about the impact potential tariffs may have on their business, according to a 2025 survey by LegalShield.
Generally, when small-business owners are hit with import tariffs, there are four main ways they can respond:
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Absorb the added cost, resulting in lower profit margins.
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Pass the cost on to customers by increasing prices.
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Negotiate lower prices with suppliers to offset the impact.
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Source products domestically or from countries with lower (or no) tariffs.
