From Whiplash to Control: Building tariff resilience

If there’s a four-letter word for distributors today, it’s ‘Tariffs.’ And after months of unpredictable tariff rates and timelines, companies on both sides of the Canada/US border are looking for any way of staying ahead of the next disruption. 

“The yo-yo effect, sudden imposition, partial relief, new rounds of escalation, has made it nearly impossible for distributors to rely on traditional planning cycles or manual cost tracking,” writes Stephan Liozu with Zilliant, in a recent article for MDM Distribution Intelligence. “Instead of reacting after the fact, the time has come for distributors to get proactive, automated and aligned.”

Where can an HVAC distributor start? In Taming the Tariff Yo-Yo: Building the Muscle for 2026, Liozu stresses that it's time to go beyond reacting to headlines and begin building the capabilities to track and respond quickly to tariff changes before they catch your operations off guard. Building the "tariff muscle," he says, begins with:

  • Training for disruption: Ensure your team has the skills, processes, and tools to respond quickly to tariff disruptions the moment they surface. "Disruption fatigue is real, but so is complacency," writes Liozu.  "The assumption that things will 'settle down' in 2026 is not only naive, it's dangerous. The next wave of disruption will reward teams who've been learning through action."
  • Getting analytical: Sure, manually pouring over the numbers, calling suppliers, and "trusting your gut" can help point the way. In today's environment, companies must consider how technology can enable them to react even quickly and with greater precision. This includes automated systems and analytical tools that can track cost changes, apply pricing rules, and simulate scenarios to protect margins. The goal isn't to replace humans in the decision-making process, but to give them the means to be more effective.
  • Centralizing your tariff response: It's easier to keep tabs on tariff developments and pricing volatility when all information is flowing and accessible through one central team or "hub." Liozu calls this a "control tower," describing it as a group with real-time visibility across sourcing, pricing, customer segments, and margin impacts that has the means and authority to review the latest data, simulate actions, and align the organization on a response. "Many distributors still rely on loosely connected teams to manage trade and pricing disruptions. Procurement checks with finance. Sales checks with pricing. Marketing tries to frame the message. It's slow and full of friction," he explains. "A control tower eliminates this bottleneck. It centralizes intelligence, accelerates alignment, and allows leaders to make decisions based on facts, not emotion or politics."

Liozu’s article applies a tech-heavy approach to managing tariffs. Nevertheless, it emphasizes the need for proactive leadership, cross-departmental collaboration, and investments in people and technologies during an era of disruption.

Read more in MDM Distribution Intelligence's Taming the Tariff Yo-Yo: Building the Muscle for 2026

Also learn more about how HRAI and the HVACR industry is responding to trade challenges in our series of Tariff webinars.

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