Solution providers taking a ‘wait and see’ approach to tariffs: Research
Tariffs trigger pricing pressure, uncertainty, and caution across the global channel
As uncertainty swirls around the latest round of US tariffs on Chinese imports, a new study from The Channel Company’s IPED division reveals widespread concern among channel partners globally — and signals a potentially disruptive period for pricing, customer demand, and growth strategies across the ecosystem.
Based on interviews and surveys with over 50 global stakeholders — including solution providers, distributors, and vendor channel leaders — the research paints a complex picture of cautious preparation, varied impact, and a distinct sense of déjà vu.
While cloud and software pricing remain relatively untouched for now, many anticipate ripple effects if infrastructure or datacentre costs rise.
“We’ve gotten notice from some of the security software players of price increases — 10–12 per cent to partners,” said a $10m US provider.
Customer behavior is shifting too.
“We’ve seen some customers make purchases ahead of the tariffs and others delay purchases because of them,” another large US solution provider noted.
Another solution provider in the market added: “Expect customers to hold off purchases and sweat existing assets.”
Across the board, sales cycles are elongating, urgency is tempered by uncertainty, and buyers are prioritising needs over wants. The comparisons to COVID-era decision making invite themselves.
From a growth and investment perspective, most partners are staying flat or cautiously optimistic. Several flagged Q2 as the "bellwether" quarter that will shape their second-half strategies.
Most solution providers said they remain in information collection mode and do not want to overreact to the rapidly changing situation.
However, they are aiming to stay close to their customers to understand the impacts.
Still, some see opportunity amid the chaos.
Security, ROI-driven tools, and efficiency enablers are high on the priority list.
“We are accelerating our move to a vertical orientation because we see opportunity to make companies more efficient,” said one US solution provider.
Others pointed to increased customer interest in leasing and as-a-service models, particularly in the education and public sectors.
Vendors, for their part, are treading carefully.
While some have issued price hike warnings, others are holding firm.
“We just sent a note to our partners today telling them that orders placed this quarter will not see any pricing increases,” a security hardware and software vendor reported.
The bigger concern, especially among global players, may be perception.
Multiple US players reported global skepticism increasing toward purchases from US-based companies. Other regions, meanwhile, see opportunity in US uncertainty.
The bottom line? While it’s too early to fully quantify the business impact, few expect the turbulence to clear quickly.
Solution providers are not hitting the panic button yet – but evaluating the situation and making educated choices.