The June GTIA Channel Economic Tracker shows a notable improvement in economic sentiment by U.S. channel firms, with more businesses now describing the general economy as "strong" and expressing optimism about the next 12 months. While this is a positive signal, the underlying reality—especially regarding tariff impacts and cost pressures—suggests continued vigilance is needed.
In June, 43% of respondents described the economy as “strong,” up from 39% the prior month. Likewise, optimism about the next 12 months rose from 45% to 55%, while pessimism declined sharply from 39% to 28%. These are clear signs that economic fears—whether related to inflation, customer demand or global instability—have eased slightly. More importantly, fewer respondents are expressing strongly negative views, suggesting that the industry may be adapting to ongoing macroeconomic uncertainties.
Another shift worth noting is how channel executives are viewing tariffs. In contrast to May—when most firms cited tariffs as a predominantly negative force—June data shows more executives viewing tariffs either neutrally or even positively. That said, it's important not to confuse sentiment with impact. A majority (62%) reported passing tariff-related costs to customers, either partially or fully. That figure is up from 59% in May. This slight upward trend reveals that pricing pressure has not disappeared—it has simply shifted downstream.
Even with growing optimism, a basic concern remains: Many firms are still absorbing or offsetting higher costs driven by tariffs and supply chain issues. The persistent rise in the cost of goods sold (COGS), particularly on imported hardware and components, poses long-term risks. Firms may continue to hike prices for customers, threatening competitiveness and customer retention— especially in the small-to-midsize business (SMB) market where price sensitivity is high. They could also curtail new investments.
The GTIA Channel Economic Tracker captures monthly sentiment from U.S. channel companies regarding tariffs and the state of the U.S. economy, highlighting the complex landscape businesses face today, as well as potentials pros and cons of tariffs and the actions that companies are taking to mitigate their effects.
GTIA Members: Read the June 2025 GTIA Channel Economic Tracker in the Member Portal.
