Supply Chain at Risk: How Prolonged Tariffs Are Slowing Growth
By Stephanie R
In this article by Supply Chain Management Review, Eric Hoplin—President and CEO of the National Association of Wholesaler-Distributors (NAW)—warns that extended tariffs are placing an unsustainable burden on U.S. supply chains and threatening broader economic growth.
Hoplin argues that while the Biden administration’s goals of strengthening the U.S. economy and reducing reliance on China are valid, uncertainty around ongoing and new tariffs is causing unintended harm. According to a recent NAW survey, over 30% of distributors are already seeing price increases of 25% or more, with nearly two-thirds anticipating double-digit cost increases in 2025.
This disruption affects not just wholesalers but ripples through sectors like retail, manufacturing, and construction. Hoplin cites decreased holiday inventory orders, reduced port traffic, and scaled-back business investment as early warning signs. Even efforts to diversify sourcing—such as moving operations to Vietnam—are being undermined by newly imposed tariffs in those regions as well.
Hoplin emphasizes that distributors are resilient, having weathered a global pandemic and economic instability, but they need trade certainty to plan, invest, and grow. His central plea is for the administration to accelerate long-term trade negotiations to avoid derailing the economic progress built in recent years.
Stay informed on industry news and changes with our #tariffs tag