How to Calculate Tariffs by Country

Expanding globally? Then you already know: every country plays by its own rules.

Tariffs, duties, and import taxes vary dramatically across borders — and miscalculating them can lead to delays, fines, or lost sales.

This article breaks down how tariffs by country really work, why traditional methods fall short, and how to use ShipSmart’s algorithm to calculate total landed costs accurately, automatically, and at scale.

Why Do Tariffs Vary by Country?

Tariffs aren’t just about geography — they’re about trade policy.

Each country has its own rules for:

• Duty rates by product category (based on HS Code)

• Tax thresholds (like VAT or de minimis limits)

• Free Trade Agreements or regional blocs

• Prohibited or restricted items

• Courier-specific treatment (courier vs. postal vs. freight)

For example:

• The same cotton t-shirt can be tax-free in Chile but taxed at 20% in the U.S.

• A drone might require special clearance in Europe but move faster through LATAM.

• Some countries include freight in the taxable base; others don’t.

It’s not just complex. It’s constantly changing.

The Problem with Manual Calculations

Some ecommerce teams try to use spreadsheets, public tariff lookup tools, or even past shipment invoices to “guess” future costs.

That approach might work for one product, to one country, once.

But as soon as you expand to new markets or change SKUs, it breaks.

Here’s why manual methods fail:

• Tariff codes (HS Codes) can vary by destination

• FTA eligibility depends on origin AND proper documentation

• Tax rules change often — especially post-pandemic

• Declared values affect thresholds and duty rates

• Shipping method (courier vs. freight) changes the rules

Without automation, it’s nearly impossible to keep track — and mistakes are expensive.

Why a Smart Algorithm Is the Only Scalable Option

To calculate tariffs accurately by country, you need an engine that considers:

• The correct HS Code based on product description

• The destination country’s rules and thresholds

• The type of shipment (courier, express, postal, freight)

• Whether the product qualifies for any exemptions or agreements

• The currency exchange rates and declared value

That’s exactly what ShipSmart’s algorithm does.

How the ShipSmart Algorithm Works

When you create a shipment or upload a catalog to ShipSmart, our system automatically:

1. Analyzes your product (based on description, SKU, or HS Code)

2. Matches it with local classifications across 20+ countries

3. Calculates tariffs, duties, and import taxes in real-time

4. Suggests cost-saving alternatives, such as alternative classification (when compliant)

5. Returns the total landed cost — before the customer checks out

This means you (and your customer) know exactly how much will be paid on each order — no guesswork.

Bonus: Integration and Automation

You can access ShipSmart’s tariff algorithm in three ways:

• Directly in our platform (UI)

• Via API integrated into your store or ERP

• Via Excel uploads, perfect for bulk classification and rate estimation

You can also simulate quotes for different countries before deciding where to expand next.

Final Thoughts

Selling globally means more than just opening shipping lanes. You need to master local rules — especially when it comes to tariffs and taxes.

Manual work doesn’t scale. And generic tools don’t go deep enough.

If you want to operate internationally with precision and speed, it’s time to use technology built for global trade.

Try ShipSmart’s tariff engine and see how much smarter global ecommerce can be.
Get started here