Blog

How Tariffs Impact Commercial Contracts

05/06/2025

In the wake of recent U.S. tariff announcements and talk of retaliatory measures abroad, companies throughout a range of industries have been bracing for ripple effects. Even businesses that don't directly trade across borders can feel the impact through supply chain disruptions, cost increases, and contractual uncertainty. For legal teams, this means one thing: it's time to review your contracts.

Untitled design (14)

 

This post isn't legal advice, but it does spotlight key areas where tariffs could affect your commercial agreements — and why now is the moment to get your contract governance house in order.

 

Key Areas of Impact on Commercial Contracts

 

Pricing and Payment Terms

 

Sudden tariff impositions can raise costs in the middle of a contract's lifecycle. If tariffs change the economics of a deal, who shoulders the extra burden? Does your agreement allow for price adjustments, or are you locked into pre-tariff rates?

 

Delivery and Supply Chain Obligations

 

Tariff-driven supply chain delays can trigger missed deadlines, late penalties, or even claims of force majeure. Do your delivery terms provide any buffer? Can suppliers or buyers point to "unforeseeable events" as grounds for renegotiation or termination?

 

Defined Terms and Clause Triggers

 

Key clauses like "change in law," "material adverse change," or "force majeure" vary widely across agreements. Are these terms harmonized across your contract portfolio? Do you know exactly how each is defined in context? A subtle variation in language can make the difference between an enforceable claim and a dead end.

 

Risk Allocation and Termination Rights

 

Contracts often include detailed provisions on risk sharing and exit rights. Who has the right to renegotiate, terminate, or seek compensation when a sudden macroeconomic shift undermines the assumptions that went into the deal?

 

 

 

Why Strong Contract Governance Matters

 

Without clear, up-to-date oversight over your contracts, assessing tariff exposure becomes a scramble — and that makes it more difficult to negotiate stronger safeguards for your clients or your business going forward. Legal teams that rely on manual review risk missing hidden variations, outdated language, or key obligations scattered across thousands of pages.

 

Good contract governance means:

 

  • Quickly surfacing key clauses and terms across your portfolio
  • Comparing clause variations to identify inconsistencies
  • Understanding where your greatest risks (and opportunities) lie

 

How BoostDraft Can Help

 

BoostDraft accelerates contract review with features designed for real-world legal work. It makes it easy to check defined terms in context — helping you track where critical definitions appear in your contracts, and how they're used. And BoostDraft Compare makes it a snap to compare different clause versions to determine whether they align across agreements.

 

Instead of slogging through contracts manually, your team can:

 

  • Efficiently locate key terms and definitions in your agreements
  • Quickly spot differences between clause variations
  • Use that information to collaborate on updates, renegotiations, or new templates with confidence

When unpredictable changes hit the legal landscape, agility matters. BoostDraft helps legal teams stay ahead.

 

Conclusion: Stay Ready, Stay Informed

 

Tariffs are just one example of how external shocks can test the resilience of your contract portfolio. By strengthening contract governance today, legal teams can turn disruption into preparedness — and ensure their organizations are ready for whatever comes next.


To learn more about how BoostDraft can enhance your contract review process, request a demo.

 

Demo - Banner

 

Recent Post