Wholesalers and distributors are bracing for steep cost increases and inventory shortages as the Aug. 1 tariff deadline approaches. The $8.2 trillion wholesale sector faces significant financial strain due to US trade policies, particularly for smaller firms, says Eric Hoplin, president and CEO of the National Association of Wholesaler-Distributors. More than half of the US economy's tariff exposure falls on wholesalers, according to a JPMorgan study, and rising costs are expected to be passed along the supply chain, making price increases for goods inevitable. Hoplin details the challenges and uncertainty wholesalers and distributors are tackling, noting that shifting trade policies are leading to delayed purchasing decisions and changing supply lines.

President Donald Trump has signed an executive order ending the de minimis exemption that allowed low-value imports to enter the US duty-free. Starting Aug. 29, all international packages, regardless of origin, including those valued at $800 or less, will be subject to duties. The White House argues the change is necessary to protect US businesses by closing loopholes that have facilitated a surge in low-value shipments.

The personal consumption expenditures index, the Federal Reserve's preferred inflation measure, rose 0.3% in June and 2.6% from a year earlier, according to the Commerce Department. Meanwhile, a core measure that strips out the food and energy categories climbed 0.3% for the month and 2.8% on a year-over-year basis. Wages and salaries increased 0.1%, the slowest since November.

Traditional global sourcing methods such as economic order quantity and just-in-time are becoming obsolete as supply chains face constant disruptions and unpredictability, writes Srikrishna Jayaram, a supply chain executive, who highlights the necessity for an AI-driven sourcing model that adapts to real-time data and global constraints. Jayaram outlines practical steps for companies, including auditing data foundations and building dynamic EOQ calculators, to transition to this modern approach.

The Port of Savannah saw its second-busiest year, moving 5.7 million container units in fiscal 2025, driven by retailers anticipating tariffs under President Donald Trump. The port saw a 22.5% jump in container volume in March, though this was followed by a 9.6% decline in June. The Port of Los Angeles and the Port of New York and New Jersey also reported significant increases in container volumes, though the National Retail Federation expects container shipments to decline by double digits from August through November.

The B2B marketing landscape is undergoing a significant transformation with the integration of artificial intelligence, shifting focus from broad visibility to relevance and personalization, writes Matt Caiola, CEO of 5WPR. Companies like Salesforce, Adobe and Microsoft are leveraging AI to serve hyper-targeted messaging, resulting in higher engagement and conversions. This approach not only enhances customer experiences but also establishes thought leadership in specific niches, Caiola writes.

The National Association of Wholesaler-Distributors filed a lawsuit challenging Oregon's Plastic Pollution and Recycling Modernization Act. NAW argues the law threatens the distribution industry, unfairly targets out-of-state producers and violates interstate commerce regulations. "While NAW supports the goal of a circular economy, the Oregon EPR law as enacted is unconstitutional, creates new mandates, inhibits interstate commerce and fails at its primary goal of encouraging circularity," said NAW President and CEO Eric Hoplin, advocating for a program that encourages sustainability "through a uniform and transparent system where compliance burdens are shared across industries."

The Federal Open Market Committee voted 9-2 to keep the federal funds rate at a range of 4.25% to 4.5%, marking the fifth consecutive meeting without a change in the benchmark rate. The Fed noted uncertainty remains high amid moderating economic growth and persistent inflation. Chairman Jerome Powell indicated no decision has been made regarding a rate cut in September.

The International Monetary Fund has raised its global growth forecast to 3% for 2025 and 3.1% for 2026, citing softened US tariffs and a surge in US imports ahead of higher import taxes. However, the IMF warns that persistent high tariffs could weaken growth and increase economic uncertainty.

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