A new report from AI applications developer and services provider Proton.ai reveals that 42% of North American distributors still lack formal plans to address the return of global tariffs, despite mounting pressure from competitors who are taking initiative-taking steps to prepare.
The 2025 Tariff Impact Report, which surveyed 93 distributors across the industrial, HVAC, electrical, janitorial, and building materials sectors, shows that many distributors are still operating in a reactive mode. While 79% of respondents indicated they plan to raise prices to protect margins, fewer have implemented strategic measures such as adjusting sourcing practices or renegotiating supplier contracts.
“This issue isn’t just about tariffs—it’s about overall visibility,” said Benj Cohen, CEO of Proton.ai. “Too many distributors are flying blind right now. The companies that are ahead aren’t predicting the future perfectly, but they’ve built systems that enable them to adapt quickly when the market shifts.”
The report also reveals a growing divide in strategies related to China. While 35% of respondents are looking to reduce their reliance on Chinese suppliers, 20% plan to raise prices specifically on Chinese goods.
Proton.ai finds that distributors who delay action risk falling behind, particularly as competitors take advantage of the current pause in tariff increases—announced recently by the White House—to recalibrate their strategies. The report outlines several steps distributors can take to stay ahead, including utilizing bonded warehouses, deploying pre-tariff inventory strategically, automating low-value tasks with AI, and tracking vendor costs in real-time.
“The best sales teams aren’t reacting in crisis mode,” Cohen said. “They’re staying close to their customers while others scramble to catch up. Distributors who use this pause to gain clarity on their cost exposure and customer strategy will be in a far stronger position if tariffs resume.”
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