It Adds Up: Calculator Puts Price Tag on Tariffs

Wonder just how much the new and reciprocal proposed tariffs could cost the global economy in both direct and indirect ways? How about $4.7 trillion?

That estimate is courtesy of Fair Supply, an Australia-based provider of risk management and compliance technology solutions that has created what it calls the world’s first supply chain tariff calculator to help business owners and investors understand the real economic impact of global tariffs.

Basically, drawing from a proprietary data engine that maps more than 60 billion global supply chains, the calculator measures the cumulative economic fallout from tariffs across multiple tiers of international trade.

“Our calculator captures the true cost of the tariffs that impact businesses, not just at the border but throughout the highly connected global supply chain,” said Arne Geschke, Co-Founder and Chief Data Officer at Fair Supply. “When secondary and tertiary suppliers are hit with tariffs, the resulting cost increases ripples through international supply chains, inflating costs, distorting pricing and eroding global competitiveness.”

Fair Supply has calculated that the most-affected sectors globally will be:

• Public Administration/Defense: $397 billion (including a $320 billion cost to the U.S.)
• Automotive Manufacturing: $406 billion ($172 billion to U.S.) (Prices for domestically manufactured motor vehicles in the U.S. are estimated to be hit with a 20% price increase.)
• Pharmaceuticals and related products: $244 billion ($92 billion to U.S.)
• Computer manufacturing: $260 billion ($50 billion to U.S.)
• Construction: $220 billion ($112 billion to U.S.)

The calculator recalibrates in real time, a reflection of the dynamic nature of current geopolitics, which have proven to be subject to dramatic changes on a daily basis. Much of that volatility is traceable to zigzags by the Trump administration, whose tariff plans have set off a global trade war.

A free version of the Fair Supply Tariff Calculator is available to the public. A premium version will also be offered through a subscription plan, providing advanced analytics, reporting tools integration features, and ESG overlays to support strategic decision-making at the executive level.