Chairman's Message: Trade Policy Needs Consistency, Not More Uncertainty
As shifting trade policies drive up costs and complicate pricing, distributors are seeking a more consistent approach to tariffs and trade.
By Marc Tell
CEO, Sam Tell Companies
Chairman, FEDA
In our current era of rising costs, trying to price out a project more than a few months in advance often feels like an exercise in futility. Prices for equipment have risen an average of 9.2% over the past 12 months, according to data from the Bureau of Labor Statistics, and our customers are feeling it. The most frustrating part of it all is that one of the biggest drivers of these price increases is a policy choice rather than a market condition: tariffs.
The Tax Foundation estimates that the government’s current trade policies have raised the applied tariff rate from 1.5% in 2022 to 11.7% today. Those import taxes must be absorbed somewhere in the supply chain, either by squeezing the profit margins of distributors and manufacturers or by asking foodservice operators who need a new oven or walk-in refrigerator to be even more flexible with their budgets. But it’s not only the higher prices that make tariffs a challenge. It’s the unpredictability. U.S. tariff policy has changed more than 50 times since January 2025. New import taxes are introduced, only to be struck down by the courts, then replaced by other tariffs imposed under a different law. The situation changes faster than we can update our product catalogs.
Of everything hitting our businesses right now, tariff volatility is the issue that I hear about most from other industry leaders. To the extent that this is both a legislative and a regulatory issue, our representatives need to understand that “noise” from our leaders can be harmful to business when it isn’t accompanied by a consistent approach grounded in valid global competitive concerns.
Across our industry, distributors are absorbing cost increases mid-quote, watching lead times stretch as manufacturers scramble to source alternative materials, and losing bids to competitors who happened to lock in pricing before the latest round of tariff announcements. When rates shift unpredictably, we can’t hedge against it, and neither can our customers.
That’s why I’m so glad a business outreach staffer from Rep. Blake Moore (R-UT) will be joining us at the Legislative Advocacy Presentation during the FEDA Annual Executive Leadership Conference to speak directly about trade and tariff issues. I’m eager to hear his perspective, because our members deserve a clear-eyed explanation of where this is headed and what Congress plans to do about it. My hope is that lawmakers on both sides of the aisle recognize the urgency here and act to bring some stability back to our approach to trade policy. Our companies can adapt to almost anything, except uncertainty with no end in sight.
On a different note, my time as FEDA chairman is coming to a close. After the FEDA conference, I’ll be passing the baton to Jamie Arguello, principal and CEO of Grady’s Foodservice Equipment & Supplies. I’ve watched Jamie build relationships across every corner of this industry, and I have complete confidence she’ll lead FEDA with the same warmth and clarity she brings to everything else. Combine that with the momentum our councils have built — from the Future of Distribution and Emerging Distributors councils to the advocacy work of the Legislative and Regulatory Affairs Council — and I couldn’t be more optimistic about where the association is headed.