29th April 2025
“With the current state of the globalisation of supply chains it is no wonder that Trump’s tariffs have caused trepidation. If nothing else the uncertainty caused serves as a reminder for businesses to understand what their supply chain arrangements require contractually and the importance of flexibility to counter any adverse impacts.”
Today global supply chains are facing a level of uncertainty unlike anything we have seen since the early days of COVID-19.
President Trump’s tariff barrage is leaving many companies and organisations in a precarious position; businesses are already concerned about the effect of these tariffs on their supply chain arrangements and commercial viability, and many businesses are likely to feel the impact in the coming months and years.
In this article we’ll be looking at, and providing practical tips in relation to, what businesses should be looking for in the contracts which deal with supply chain arrangements.
The contracts that govern your supply chain arrangements may be long, lengthy documents which cover a whole host of clauses and schedules, however not all will be relevant when reviewing in the context of potential supply chain disruption caused by “tariff-mania”. Key clauses to focus on include:
Understanding what your contracts set out in relation to the above will help you understand the implications of any tariffs which impact your supply chain. In turn, this will help you navigate these choppy waters without going head to wind.
Where supply chain or other contractual issues do arise, you should consider commercial and reputational risks, alongside legal issues. What may be possible legally, may not represent your best interests commercially or reputationally.
For example, you may wish to consider:
We’re full-service, single site law firm with experts across everything from commercial contracts to commercial disputes resolution, competition and regulatory compliance. Our manufacturing, distribution and international trade expertise spans all of these, including our highly regarded Manufacturing Team and International Trade Team.
James Crayton, Nick McQueen, and Kyran Clarke are able to provide thorough advice on all elements of supply chain arrangements and how to navigate any issues that may have arisen since T-Day, the date on which President Trump announced so-called reciprocal tariffs on imports to the United States.