Flexport Debuts Tariff Simulator as Customers ‘Need Clarity on Costs'

Yahoo

3 days ago

Flexport wants to help businesses better estimate how much extra they're paying in tariffs when they're importing goods into the U.S.
The digital freight forwarder launched the Flexport Tariff Simulator Monday as importers continue to navigate the stop-and-start environment. The simulator is accessible to the general public.
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With the Flexport Tariff Simulator, importers shipping to the U.S. can now estimate tariff and landed cost scenarios based on key shipment details, including: the Harmonized Tariff Schedule (HTS) code; shipment value; entry date; country of origin; and product-specific details such as material composition.
For example, a business importing a men's T-shirt from China can either search their specific product category or enter the relevant HTS code and select an entry date to receive an estimated, detailed duty calculation with landed cost. The calculation also breaks out how much is owed for each individual duty that applies to the product's country of origin.
Additionally, the tool also allows shippers to include potential exclusion codes to determine how much they would save if applied.
Within the simulator, there is an interactive map that allows users to see trade data around the world including the total value of imports from a given country, the current average duty rate and the percentage of total U.S. imports coming from that country. The map also can break down total imports by individual HTS codes, and enables users to see the top trade partners for each individual product category.
The simulator is built to enable dynamic scenario planning and cost forecasting as importers explore alternative trade lanes, manufacturing options and import timelines. According to Flexport, the user interface is updated in real time as tariff policies change.
'Our customers have been telling us loud and clear: they need clarity on costs,' said Ryan Petersen, founder and CEO of Flexport, in a statement. 'Our engineering team built The Flexport Tariff Simulator in response to meet that need in the face of all the uncertainty caused by rapid policy changes. We want to help merchants avoid expensive surprises.'
Petersen has been vocal about the tariffs in recent months and how they could impact the Flexport business and its many customers. He told Fortune in a recent interview that the duties push back profitability projections for Flexport by six months to a year. And in a separate interview with The Wall Street Journal, he called the tariffs 'an extinction-level, asteroid-wiping-out-the-dinosaurs kind of event' for small businesses.
In a LinkedIn post on Monday, Petersen called the tariff simulator 'the number one thing customers have asked for.'
Retailers and brands alike of all sizes have had to endure a flurry of on-the-fly changes to U.S. tariff policy since April 2, when President Donald Trump's 'Liberation Day' announcements unveiled a slew of country-specific 'reciprocal' tariffs on dozens of American trade partners.
A week later, on the day those duties initially went into effect, Trump put a 90-day pause on the country-specific tariffs, paring them back to a 10-percent baseline.
Much of the attention is now on China, where plenty of Flexport customers still manufacture and source many of their products. China has seen the most tariff fluctuations of any U.S. trade partner as the White House continues its trade war against the country, likely creating confusion among those business leaders needing to stay abreast of the immediate impacts.
On top of already existing Section 301 tariffs, China's 'Liberation Day' duties, including the 20-percent fentanyl-related tax, totaled 54 percent. These tariffs were then escalated to 145 percent as the remaining country-specific tariffs were scaled back, before being put largely on pause in May for 90 days. Chinese imports into the U.S. now have a duty rate of 30 percent.
President Trump and China's President Xi Jinping could hold direct talks on the tariffs as soon as this week, according to the White House.
Flexport's launch came the same day a Reuters report indicated that the White House wants its 'best offers' from U.S. trade partners by a Wednesday deadline.
The official deadline for most countries to negotiate new deals with the Trump administration is July 9, before the 90-day pause expires and the original April 2 duties would go into effect. For China, the target date is Aug. 14.
Alongside the tariff simulator launch, the freight tech company also is debuting a new, searchable catalog of HTS code content. Each entry is designed to provide detailed, easy-to-understand information to help businesses better navigate classification requirements, special duty rates and implications for their customs clearance process.
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