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.

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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.”