Optimism slips in the channel as tariffs and a trade war loom.
The North American channel community entered 2025 with a surge of optimism. Artificial intelligence was driving increased investment, prompting a refresh of networks, endpoints, and security.
Market analysts forecasted IT market growth of 9% to 12%, while partners told Channelnomics they expected sales and revenue to rise 10% to 14%. That’s not bad, considering the past few years have been a slog for most vendors and partners.
But things have shifted quickly in recent months. The Trump administration returned to the White House with an aggressive trade agenda, imposing blanket tariffs on nearly every country — igniting a trade war that sent markets tumbling and upended forecasts. Economists now warn that the United States and much of the world could slip into a recession because of the tariffs.
