Landed cost is the total price of a product once it has "landed" at your location and is ready to sell. It goes far beyond the price your supplier charges — it includes every cost incurred from the factory floor to your warehouse door.
Product cost: The price you pay your supplier (FOB, EXW, or CIF depending on your Incoterm).
International shipping: Ocean freight, air freight, or courier charges to get goods to the US port of entry.
Insurance: Cargo insurance covering loss or damage during transit.
Import duties and tariffs: MFN base duty, Section 122, Section 301 (China), and Section 232 (specific sectors). This is often the largest variable cost.
Customs processing fees: Merchandise Processing Fee (0.3464%) and Harbor Maintenance Fee (0.125%).
Customs broker fee: Your broker charges $100-250+ per entry to handle paperwork and compliance.
Domestic freight: Trucking from the port to your warehouse or Amazon FBA center.
Other: Demurrage, storage at port, inspection fees, duties on packaging, etc.
Before 2018, tariffs were a minor line item for most importers — typically 0-5% of product value. In 2026, tariffs can be the single largest cost in your landed cost calculation, exceeding even the product cost itself for Chinese imports in some categories.
âš¡ Example: Chinese Apparel
Product cost: $5.00 | Shipping: $1.00 | Customs Value: $6.00
Tariff (58% = 18% MFN + 25% S301 + 15% S122): $3.48
The tariff cost ($3.48) is 70% of the product cost ($5.00). For comparison, pre-2018 the tariff would have been about $1.08.
Source from lower-tariff countries. The difference between China (40-60% tariffs) and Mexico/USMCA (0-5%) can cut your landed cost by 20-30%.
Optimize shipping. Ocean freight is 5-10x cheaper than air freight. Consolidate shipments to fill containers.
Negotiate better pricing. Even small reductions in FOB price reduce your tariff bill too (since duties are a percentage of customs value).
Review your HTS classification. The right classification can save 5-15% in MFN duty rates.
Calculate Your Landed Cost Now
Landed Cost Calculator →FOB (Free on Board) is just the supplier's price at the port of export. Landed cost includes FOB plus shipping, tariffs, fees, and all other costs to get the product to your door.
In 2026, tariffs add 15-70%+ to the customs value depending on country and product. For Chinese goods, expect 25-60% in additional costs.