Wholesaler association says impending tariffs may worsen inflation

National Association of Wholesaler-Distributors says tariffs could ‘divert valuable capital away from critical investments’

The National Association of Wholesaler-Distributors represents the $8.2 trillion wholesale distribution industry that accounts for one-third of U.S. GDP. (Photo: Jim Allen/FreightWaves)

The National Association of Wholesaler-Distributors (NAW) has expressed concerns over President Donald Trump’s impending tariffs – set to go into effect on Wednesday.

On March 26, Trump signed an executive order imposing 25% tariffs for all cars, light-duty trucks and certain auto parts imported into the U.S. These tariffs, along with a wider array of additional tariffs are planned for Wednesday.

A recent news release from the industry trade association highlighted potential negative impacts tariffs may have on the supply chain and U.S. economy.

While NAW acknowledged the president’s efforts to boost the economy, it warned that continued tariffs on key trading partners like Canada and Mexico could lead to significant cash flow issues and disruptions for distributors.

The association said tariffs “divert valuable capital away from critical investments in hiring, wages, training, and expansion – the very factors that drive economic growth and support American workers.”

“Additionally, tariff-induced disruptions risk exacerbating inflation, increasing the cost of essential goods, and placing financial strain on businesses and consumers alike,” NAW stated. “As negotiations continue, NAW encourages President Trump to consider these economic realities and pursue policies that enhance American competitiveness while maintaining affordability and financial flexibility for the companies that power our economy.”

NAW, founded in 1946, represents the $8.2 trillion wholesale distribution industry that employs over 6 million workers across the U.S. and accounts for one-third of U.S. GDP.

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Caleb Revill

Caleb Revill is a journalist, writer and lifelong learner working as a Junior Writer for Firecrown. When he isn't tackling breaking news, Caleb is on the lookout for fascinating feature stories. Every person has a story to tell, and Caleb wants to help share them! He can be contacted by email anytime at Caleb.Revill@firecrown.com.