Reseller and distie bosses talk long-term impact of tariffs

Channel leaders weigh in as tariff tensions fuel uncertainty and inventory shifts

As the US government has made gestures towards de-escalating its ongoing tariff war with China, and the rest of its trade partners are left on standby, we continue our coverage of where the channel stands on the tariffs and how they’re impacting business.

The Trump administration itself appears to be softening on the levies – with one notable exception.

Trump has imposed taxes of up to 145 per cent on imports from China, in addition to existing ones.

Other trading partners now face a blanket ten per cent levy until July.

China has fired back with its own 125 per cent tax on products from the US and signaled its determination to stay the course.

As of 23 April, the broad sentiment among channel partners is wait and see.

Here’s what two senior leaders – one within a reseller and one a distributor – had to say about the potential spinout effects.

Simon Williams, CEO of Trustmarque, highlighted the complex, layered impact of tariffs – not on his business directly, but across the wider ecosystem.

“I think we need to look at direct and indirect impacts,” he said.

“Are the tariffs going to have any impact on the Trustmarque group directly? No. Are they going to have an impact on our clients? Yes. Are they going to have an impact on the economy? Yes. Those are the indirect impacts.”

He notes that Trustmarque’s strong public sector focus provides a buffer but warned that commercial sectors – especially large enterprises – will feel the pressure.

“If you're an SME and you're selling to an enterprise and that enterprise is impacted, then you're impacted,” he adds.

“Either because they'll have to share some of the cost burden with them, or the prices will go up. So I think it's more of an indirect impact in terms of people who are directly impacted by the tariffs, will then pass on some of the pain… I'm going to wait and see.”

One senior figure within distribution points to a potential glut of stock heading for Europe and the UK.

“Official responses are limited at this stage; however, the general consensus is that the tariffs are likely to lead to excess inventory which is likely to find its way to Europe and the UK that was previously destined for the US,” they say.

They add that while the immediate effect may be delayed, downstream consequences are inevitable.

“Given the pause on certain tariffs, technologies and countries the impact is likely to surface in circa six months… however likely with any unforeseen events this can bring opportunities.”

Despite the uncertainty, the distribution leader strikes a note of confidence:

“We closed our most recent financial year ahead of our projections and we are optimistic for the current year with our focus on specialism.

“We will continue to keep close dialogue with our customer and vendor partners to best serve their needs with agility being key to success in these uncertain times.”