The National Association of Wholesaler-Distributors (NAW), in collaboration with MDM Research, released new survey results on the impact of tariffs on the supply chain. Based on responses from more than 200 distributors, the findings reveal that 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. Though these increases haven’t hit store shelves yet, it’s an indication of where prices are headed,” said Eric Hoplin, CEO of NAW. “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% indicate 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 followed by the steel and aluminum tariffs and reciprocal tariffs. Thirty seven percent report more than 20% of their inventory originates in China and only 17% say 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.

More MDM Research on Tariff Impacts (Premium)

• Distributors & Manufacturers Split on Signs of Pullback, CapEx Plans (April 23)
• Distributors Forecast Shaky 1-10% COGS Increase with Tariffs Influence (April 21)
• How Are Distributors Combatting Higher Costs from Tariffs? Here’s What They Told Us (April 18)