Tariffs and resulting retaliatory actions from impacted countries are having significant effects on companies and their commercial transactions. Is your business involved in purchasing, importing, or selling impacted goods? Your business may face cost increases, potential supply chain disruptions, or other issues. You may want to change or be excused from your obligations.
What can you legally do?
- Identify what relationships with vendors, suppliers, and/or customers will be affected by tariffs.
- Leverage specific contract provisions even if the contract does not expressly mention “tariffs.”
There are 9 common contract terms that you might be able to leverage. - What if you don’t have a written contract or your contract doesn’t contain such provisions?
There are 4 possible legal defenses if your business cannot carry out its obligations under tariff conditions. - Additionally, your business might employ the following strategies:
- You could consider renegotiating your agreements. The party doing business with you might rather help you to avoid disruption of goods and services rather than hold you to an unsustainable position.
- Add legal protections for the future so if another significant change occurs you are ready.
- Whatever approach you employ: REMEMBER TO LEGALLY PROTECT YOURSELF BY PROPERLY DOCUMENTING YOUR CHANGES TO YOUR EXISTING RELATIONSHIPS.
Want to learn how to protect your business?
Attend our breaking new webinar Legal Strategies to Tackle Tariff Challenges. We’ll include leveraging your existing contract provisions, legal defenses if your contract is silent about renegotiations, and other approaches to protect your business now and in the future. Sample language included!
This Friday, March 7 at 1pm CST.
