How Distributors Stay Profitable in An Era of Uncertain Tariffs

What happens when tariffs, rate cuts, and AI forecasting collide in the world of wholesale distribution?

In this episode, Kevin Brown and Tom Burton break down the latest economic, technological, and policy shifts affecting distributors and manufacturers.

From the longest U.S. government shutdown in history to the Supreme Court’s pending tariff ruling, they unpack what these changes mean for margins, pricing, and the role of AI-driven customer intelligence in building resilient distribution networks.

What You’ll Learn:

• How government shutdowns and rate changes create ripple effects across distribution
• The true meaning of a 17.9% average tariff rate, and why not everyone feels it equally
• Why tariff refunds could take years (or never happen at all)
• How AI-enabled CRM and contextual intelligence are helping distributors gain visibility into customers and pricing gaps
• What smart distributors are doing to balance efficiency, inventory, and profitability heading into 2026

Episode Highlights:

• 03:10 – The U.S. government shutdown “ends”… or just gets delayed until January 31
• 15:25 – How prediction markets like Polymarket are shaping economic forecasting
• 27:40 – The Fed’s next move: dissenters, inflation targets, and “The Burton Market”
• 43:05 – Tariff talk: why the Supreme Court ruling isn’t really about tariffs
• 55:18 – Mark Brohan’s article on the 17.9% effective tariff rate and what it means for distributors
• 01:07:34 – Why smaller distributors dependent on wholesalers face steeper challenges
• 01:16:55 – Final thoughts: AI, efficiency, and the future of pricing power

Meet the Hosts:

Kevin Brown and Tom Burton are co-founders of LeadSmart Technologies, creators of LeadSmart Channel Cloud™, the industry’s first AI-enabled Customer Intelligence and Smart CRM platform built exclusively for manufacturers and distributors.

Tools, Frameworks, or Strategies Mentioned:

• LeadSmart Channel Cloud™ – Unified customer intelligence platform for distributors and manufacturers
• Polymarket – Decentralized prediction market for economic forecasting
• Yale Budget Lab Study – Analysis of U.S. tariff rates and macroeconomic effects
• Context Engineering – Aligning AI systems with business intent
• Customer Intelligence Framework – Turning siloed ERP, CRM, and eCommerce data into actionable insights
  
  

Closing Insight:

“AI doesn’t replace relationships, it reinforces them by removing friction.” — Kevin Brown

From tariff volatility to AI-driven opportunity, this episode explores how distributors can navigate uncertainty with smarter strategy, deeper data, and stronger customer connections.

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