The tariff debate is no longer theoretical; it’s driving hard numbers and harder decisions for distributors every day. Recent economic releases point to higher consumer prices and a cooling growth outlook, while executives across the supply chain scramble for flexible contracts and faster technology adoption.

At NSA, we see tariffs not as an existential threat but as a catalyst to modernize brittle operating models. Below is our data-driven look at what’s happening, what it means for distributors, and how NSA’s tool-set turns uncertainty into opportunity.

The Pressure Is Real—and Quantifiable

• Inflation uptick. Import-heavy categories like electronics and furniture have logged the steepest price jumps, feeding a 2.7 % YoY rise in the CPI—the biggest pop since early 2025.
• Income squeeze ahead. Fed economists project a 0.4 % decline in real household income by 2028, with tariff drag neutralizing job gains in domestic manufacturing.
• Global slowdown signals. July’s Purchasing Managers Index flashed its sharpest deceleration since the pandemic, prompting analysts to prep for a broader contraction.

For distributors, these macro trends translate into thinner margins, longer cash-conversion cycles, and heightened credit risk up and down the channel.

How Industry Leaders Are Responding

1. Accelerating AI & Automation – Nearly half of surveyed firms say they will fast-track intelligent automation to blunt cost spikes without adding headcount.
2. Demanding Contract Flexibility – Over half are inserting economic-trigger clauses that let them renegotiate prices or shift sourcing on short notice.
3. Rebalancing Vendor Mix – Seven in ten companies are actively reevaluating suppliers to hedge against tariff volatility.

The NSA Advantage

As an Infor Alliance Partner with decades inside distribution, NSA gives you the playbook—and the horsepower—to act on these strategies:

• Tariff-Ready CloudSuite Distribution Setup – Our consultants optimize landed-cost tracking, GL impacts, and tariff accruals right in CSD, so you see true margin by product and customer.

• Automation That Doesn’t Disrupt Operations – NSA’s Pathway to Success library (60+ on-demand sessions) shows your team how to embed AI-driven processes without plant moves or regulatory hurdles.

• Contract & Pricing Advisory – We model dynamic escalator clauses and vendor-flex options inside your ERP, giving sales the guardrails to protect profit even as inputs swing.

• Proven Implementation Methodology – Senior consultants, outcome-based milestones, zero-surprise budgets—exactly why distributors choose NSA to modernize mission-critical systems.

Your Next Steps

1. Benchmark Your Exposure. Map current SKUs to tariff codes and model worst-case landed costs.
2. Automate the Math. Use CSD’s built-in tariff accrual features—configured by NSA—to remove manual error and accelerate reconciliations.
3. Upskill the Team. Watch our FREE webinar replay, “How to Manage Tariffs in CSD,” and see live demos of the tools discussed above.
4. Schedule a Strategy Session. Let’s align your tariff mitigation plan with broader growth targets- book a meeting with our experts today. 

Stay Ahead with NSA

Tariffs won’t define the winners and losers in distribution—response time will. With NSA in your corner, you get the technology, insights, and execution muscle to adapt faster than the market moves.

Ready to future-proof your business?
📅 Book your consultation or watch the webinar today.

NSA – Your Partner in the Distribution Space