Legal Gym™ - Legal Fitness for Businesses

Tariffs & Trade

💼 Welcome back to the Legal Gym™ Series, where we train your legal instincts like a pro – one solid tip at a time! ⚖️💪

This week’s focus:
🔹 Tariff Trouble: Is Your Cross-Border Contract Ready for Trade Shocks?

In today’s unpredictable global trade landscape, tariffs are more than just taxes—they're legal and financial complications that can disrupt your entire supply chain.

Here are 3 contract tips every business should flex before signing an international deal:

🧾 Check Your Incoterms® & Cost Allocation – Don’t guess who pays the tariff. Terms like EXW or DDP define cost responsibility. Miss this? You might absorb more than you planned.

📈 Include Price Adjustment Clauses – Tariff hikes can destroy margins. Smart contracts allow for automatic or negotiated price changes when costs spike unexpectedly.

🛑 Don’t Rely Solely on Force Majeure – Tariffs rarely make performance impossible—just more expensive. Instead, add hardship clauses to renegotiate terms if things get commercially unbearable.

💡 A well-drafted contract is your best protection against unexpected trade risks. Incomplete or unclear terms can cost more than just money—they can cost business relationships.

📩 Need help reviewing or drafting your international contracts? Let us support you before tariffs hit your bottom line.

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