Stay in Canada + Tariffs
$38,850
Total unit cost with border friction
Physical US Relocation
$37,490
Total unit cost including CapEx & input tariffs
Breakeven Tariff Floor
18.4%
Tariff rate where relocation breaks even
US Consumer Price Spike
+16.2%
Retail price increase for American buyers
Bilateral Supply Chain Transit Loops & Border Checks
Tracking intermediate goods crossing between Ontario/Quebec suppliers and US industrial hubs
6 Cross-Border Handoffs Active
Unit Cost Structure Waterfall: Status Quo vs. Stay vs. Relocate
All-in cost per finished unit across production, labor, CapEx amortization, and tariff accumulation
Scenario Accounting Matrix (Per Unit Basis)
Audited baseline: Automotive Assembly @ 250k Units/Yr
| Cost Component | Status Quo (No Tariff) | Stay in Canada (Tariff) | Relocate to US | Delta (Relocate vs Stay) |
|---|---|---|---|---|
| Base Materials & Processing | $27,800 | $27,800 | $27,800 | $0 |
| Direct Facility Labor | $4,200 | $4,200 | $5,100 | +$900 |
| Cross-Border Tariff Accumulation | $0 | $6,850 | $2,150 | -$4,700 |
| Relocation CapEx Amortization | $0 | $0 | $340 | +$340 |
| Total Unit Production Cost | $32,000 | $38,850 | $37,490 | -$1,360 / unit |