A world-first supply chain tariff calculator is set to transform how businesses understand and respond to the economic fallout of global tariffs.
Developed by Fair Supply, an Australian tech startup built on a proprietary engine that maps over 60 billion global supply chains, the tariff calculator calculates cumulative tariff impacts across multiple tiers of international trade. It is the first tool in the world capable of fully capturing the impact of the ongoing trade war.
The combined direct and indirect costs of new and reciprocal tariffs could cost the Australian economy more than $15 billion. Due to global tariffs, Australia’s construction industry is expected to face substantial disruption from global supply chain interdependencies. Fair Supply’s preliminary analysis shows that the combined direct and indirect costs of new and reciprocal tariffs could cost the industry more than $1.2 billion.
While these industries are immediately at risk, the calculator is designed for use across all sectors to model supply chain vulnerabilities, quantify tariff risks, and develop contingency strategies.
Dr Arne Geschke, Co-Founder and Chief Technology Officer at Fair Supply, said that the calculator captures the true cost of the tariffs that impact businesses not just at the border but throughout the highly connected global supply chain.
When secondary and tertiary suppliers are hit with tariffs, the resulting cost increase ripples through international supply chains- inflating costs, distorting pricing, and eroding global competitiveness.
“Tariffs will be embedded in the DNA of global supply chains; without visibility into those connections, companies are flying blind. While the focus has often been on tariffs applied at point-of-entry, the real damage is further downstream,” he said.
“These indirect costs are frequently invisible to traditional monitoring and are often passed onto Australian businesses with little control over their full supplier ecosystem. Our tool gives businesses the visibility they need to make strategic, informed decisions.”
The calculator tracks how tariffs applied in one country flow through to products and materials that are eventually imported or used in Australia, giving businesses insight into real-time cost fluctuations.
A key feature of the calculator is its ability to help businesses compare the impact of tariffs across different countries, allowing them to make more cost-effective sourcing decisions. By entering the product and country of purchase, users can see where hidden tariff costs add up and explore alternative sourcing options. This makes it easier for companies to compare markets and choose the most cost-effective supplier based on current tariff conditions.
A key differentiator of the calculator is its speed and responsiveness. Unlike static models, this calculator is designed to incorporate the most recent tariff announcements, including reciprocal and retaliatory measures, as they are introduced.
“This real-time recalibration ensures businesses always work with up-to-date insights that reflect current global trade dynamics, enabling users to respond proactively to shifting cost pressures and avoid cost blowouts or procurement disruption,” Geschke said.