Proton Research Shows Distributor Disconnect Between Passive & Proactive Tariff Strategy - Modern Distribution Management

Proton Research Shows Distributor Disconnect Between Passive & Proactive Tariff Strategy

Proton’s 2025 Tariff Impact Report shows many distributors are unprepared for tariff shifts, while others leverage AI and flexible systems to gain an edge.
Authorization was obtained from the Port of Long Beach Security Division and POLB Harbor Patrol for this operation in restricted airspace.

AI-powered distribution growth platform Proton.ai released its 2025 Tariff Impact Report on June 4, which showed that 42% of North American distributors do not have a plan for responding to tariffs.

The survey included responses from approximately 93 distributors across the industrial, HVAC, electrical, janitorial and building materials sectors to poll how the industry is handling the return of global tariffs.

New NAW & MDM Research Shows Tariffs’ Growing Impact on Supply Chain (April 30)

Key findings emerging from the report include

  • 42% of distributors remain in “wait and see” mode, with no formal plans to adjust sourcing, pricing or contracts in response to tariffs
  • 79% intend to raise prices to protect margins, signaling pass-through pricing as the default approach
  • Distributors are divided on China: 35% are seeking new suppliers, while 20% are increasing prices on Chinese goods.

How Rockstar CFOs Master Tariff Turbulence, Pt. 1 (free for Premium)

Additionally, the report’s final section outlines seven strategies distributors can use to get ahead, including:

  • Leveraging bonded warehouses and FTZs
  • Using pre-tariff inventory to undercut competitors
  • Tracking vendor cost hikes in real time via internal dashboards
  • Automating low-value tasks with AI to free reps for high-impact selling

How Rockstar CFOs Master Tariff Turbulence, Pt. 2 (free for Premium)

“Right now, too many distributors are flying blind and reacting instead of planning,” Proton CEO Benj Cohen said in a June 3 news release. “The ones who are getting ahead aren’t the ones with the perfect forecast. They’re the ones who built systems that let them move fast when the market shifts.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

This field is for validation purposes and should be left unchanged.
Name(Required)

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!