How much should I raise prices for tariffs?
Raise each price enough to cover the added duty and keep the same margin %.
New price = new unit cost ÷ (1 − margin %), which is the same as price now × new unit cost ÷ unit cost now
Example: a light costs 14.20 dollars and sells for 24 dollars, a 40.8% margin.
- Duty goes from 3.9% to 28.9% on its 11.50 dollar supplier price
- Added duty: 11.50 × 25% = 2.88 dollars
- New unit cost: 17.08 dollars
- Price that keeps 40.8%: 28.86 dollars, up 20.2%, or 28.99 rounded up
How do you calculate the tariff cost per unit?
The added tariff per unit is the supplier price times the change in the duty rate.
Added duty per unit = supplier price × (new duty % − old duty %)
A % duty is usually figured on the price paid to the seller, without the international freight and insurance (19 CFR 152.102). Find the rate for each HTS code in the Harmonized Tariff Schedule and put every tariff on the item into one %. CBP makes the final call on the rate.
Example: a shelf unit with a 33 dollar supplier price goes from 0% to 25%. It now carries 8.25 dollars of duty per unit.
If the rate is per kilo or per item, switch the tool to added duty in dollars.
Why does passing on only the tariff dollars lower your margin?
Your profit per unit stays the same, but it is now a share of a bigger price.
Margin after passing on the duty = (price now − unit cost now) ÷ (price now + added duty)
Example: the 24 dollar light makes 9.80 dollars. Add the 2.88 dollars of duty to the price and it sells for 26.88 dollars. The margin drops from 40.8% to 36.5%.
The tool shows both prices on every row, so you can choose SKU by SKU.
How do you add a tariff surcharge on an invoice?
Charge each product group a surcharge equal to its imported share of the price times the duty change, and show it as its own invoice line.
Surcharge % = imported value as % of your price × (new duty % − old duty %)
To keep your margin on the surcharge too, divide by (1 − margin %).
Example: steel shelving where the imported goods are 48% of your price, with duty going from 0% to 25%.
- Surcharge: 48% × 25% = 12%
- On a 4,800 dollar order: a 576 dollar surcharge line
- Keeping a 32% margin on it: 12% ÷ 0.68 = 17.7%
Goods made in the USA get 0%. State rules on sales tax for surcharges vary.
How do I load the new prices into Shopify?
Drop your Shopify product export into step 4 and download a file with only the columns Shopify needs to update the price.
- It keeps URL handle, Title, the option columns, SKU and Price, and every variant row of each matched product.
- Shopify needs URL handle and Title to update a product. A column left out of the file keeps its current value.
- Leaving out the Option1 columns deletes existing variants, so the file keeps them.
- In Shopify, Products > Import, and tick Overwrite products with matching handles.
For QuickBooks Online or a price sheet, use the SKU and new price file. Our field guide on bulk editing Shopify prices covers testing a small batch first.
Questions
Is my price list uploaded anywhere?
Your list stays on your computer. The math runs in your browser, and closing the tab clears it.
Does it look up duty rates for me?
You enter the rates. Look up each HTS code at hts.usitc.gov or take the rate from your broker, then enter the total of every tariff on the item.
Is margin the same as markup?
Margin is profit as a share of the price. Markup is profit as a share of the cost, so a 40% margin is a 66.7% markup.
What if a tariff goes down?
Enter the lower rate as the new duty %. The tool shows the lower price that keeps your margin.
Sources
- Harmonized Tariff Schedule of the United States (2026 Revision 22), U.S. International Trade Commission,
- Determining Duty Rates, U.S. Customs and Border Protection,
- 19 CFR 152.102, Definitions (price actually paid or payable), eCFR,
- Using CSV files to import and update products, Shopify Help Center,
