With tariffs and trade tensions dominating headlines, many U.S. businesses—especially those in manufacturing and distribution—are bracing for the financial ripple effects. Sudden shifts in international trade policy or government regulation can upend even the best-laid business plans, increasing costs overnight and throwing contracts into chaos.

A recent issue with one of our clients brought this into sharp focus. We’re now advising businesses to proactively update their force majeure clauses to include specific language addressing tariffs, embargoes, and regulatory changes that could render performance commercially impractical or unsustainable.

Traditionally, force majeure clauses were designed to excuse performance during unforeseeable events like natural disasters or wars. But in today’s globalized and politically dynamic economy, that scope needs to expand.

Why It Matters

Without clear protections in your contracts, your business may be locked into pricing or obligations that no longer make financial sense. By updating your agreements to account for these modern risks, you give yourself the option to pause performance or exit a deal entirely—without breaching the contract.

Key Points to Consider:

• Review existing force majeure language in your contracts—especially supply, manufacturing, and distribution agreements.
• Include specific references to tariffs, embargoes, regulatory shifts, and other government-imposed changes.
• Ensure consistency across vendor and customer contracts to avoid conflicting terms.
• Work with legal counsel to tailor provisions to your specific industry and exposure.

Be Proactive. Act Now.

Global events continue to shift rapidly, and businesses that rely on static contract language may be caught off guard. Updating your contracts now can help protect your operations—and your bottom line—later.

Contact Chase Law Group at 310-545-7700 and schedule a consultation to review your existing agreements and discuss how to strengthen your force majeure protections for 2025 and beyond.

Stay ahead of compliance issues with proactive legal strategies.
Contact Chase Law Group

WWW.CHASELAWMB.COM
310-545-7700

_{Please note that this article is for informational purposes only and should not be considered legal advice and does constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business and its practices.}