Last week, the National Association of Wholesaler-Distributors (NAW) released a survey about the impact of tariffs on the supply chain and found that the tariffs are driving cost increases and creating operational challenges across the wholesale distribution industry.
"The survey indicates that one-third of distributors are already facing price hikes of 25% or more,".said Eric Hoplin, CEO of NAW, in a statement. "Though these increases haven’t hit store shelves yet, it’s an indication of where prices are headed. We urge President Trump to secure trade agreements quickly to restore certainty, help businesses plan, and ease supply chain pressures."
Survey results highlight nearly two-thirds (62%) of distributors expect their cost of goods sold to rise by 10% or more in 2025.
Financial strain is already widespread, with 67% of respondents reporting a negative impact on their businesses, and only 2.5% indicating any positive financial impact.
Operational shifts are also underway. Distributors are slowing inventory replenishment (48%), delaying new hiring (44%), cutting capital investments (37%), and reducing discretionary spending (60%).
The top concerns are tariffs on China, with thirty-seven percent reporting more than 20% of their inventory originating in China, and only 17% saying they are able to meaningfully shift sourcing to domestic or non-impacted suppliers.
Beyond tariffs, the survey revealed growing concern among distributors about potential tax increases. Preserving key provisions of the 2017 tax reforms, signed into law during President Trump’s first term, such as the 199A deduction for pass-through entities and a globally competitive corporate tax rate, remains a top priority for the industry. Distributors overwhelmingly credit those tax cuts with driving growth: 62% reinvested in their businesses, and 40% increased wages and benefits.
