Tariff Tension

A few commercial clients have asked how to manage tariff risks in their contracts. Tariff uncertainty is creating real challenges for businesses, from rising costs to supply chain disruptions. Reviewing key contract terms now can help mitigate risk. Key provisions to review:

• Force Majeure: May not cover tariffs unless clearly drafted.

• Change in Law/Tax Clauses: Can adjust pricing or timelines if tariffs impact costs.

• Termination Clauses: Consider exit options for tariff-driven price increases.

• Pricing Terms: Define who absorbs tariff costs, supplier or customer.

• Timelines & Performance: Address potential supply chain delays and liability.

• Dispute Resolution: Ensure governing law and resolution mechanisms align with strategy.

With trade conditions shifting, now is the time to review contracts and ensure they provide the right protections. If your business is facing these challenges, I’m happy to help.