Tariff Shock: New Calculator Reveals $1.2B Cost to Australian Construction

Australia’s construction sector could be hit with more than $1.2 billion in cumulative tariff-related costs, according to a new world-first supply chain tool developed by Australian tech startup Fair Supply.

The innovative Tariff Calculator, unveiled this week, is the first tool globally capable of capturing the full impact of both direct and indirect tariffs across international supply chains.

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Built on Fair Supply’s proprietary engine, which maps over 60 billion global trade connections, the calculator sheds new light on the economic ripples caused by international trade wars.

While the broader Australian economy could face more than $15 billion in tariff-related costs, the construction industry—reliant on complex global supply networks—is among the hardest hit. Fair Supply’s early analysis reveals the sector will bear a significant portion of these indirect tariff burdens, as materials and products flow through affected secondary and tertiary suppliers.

“Tariffs will be embedded in the DNA of global supply chains,” said Dr Arne Geschke, Fair Supply Co-Founder and Chief Technology Officer. “The real damage happens downstream, beyond the point of entry. Without visibility into those connections, companies are flying blind.”

Unlike traditional monitoring systems that focus only on tariffs at the border, Fair Supply’s calculator tracks the cost impact through every tier of a product’s journey—capturing tariff influences that were previously invisible. The result is a more accurate picture of true cost pressures and procurement risk.

One of the calculator’s standout features is its ability to help businesses compare the tariff impact of sourcing the same product from different countries. By entering the item and origin, users can identify hidden costs, explore alternatives, and make more strategic sourcing decisions based on up-to-date tariff conditions.

Crucially, the tool updates in real time, incorporating new and retaliatory tariffs as they’re introduced—ensuring users are equipped to adapt quickly to evolving trade landscapes.

With material costs already volatile, the calculator could become a vital resource for the construction industry to mitigate cost blowouts and supply chain disruptions. As the global trade environment grows increasingly complex, visibility may be the key to resilience.

Images via Fair Supply

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