Ten Things GCs Must Reassess Amid Trump’s Tariff Agenda

The far-reaching tariffs imposed by U.S. President Donald Trump have wiping up to $10 trillion from global stock markets, with the 25 largest pension funds in the U.S. collectively losing $169B in just four days, according to research by the Equable Institute.

The implications for cross-border contracts involving U.S. trade are immediate and complex. Tariffs affect prices, can disrupt supply chains, and trigger legal risks that cascade across jurisdictions.

Although a 90-day pause is currently in place for many of the planned tariffs, most observers see this as a negotiatong tactic rather than a policy reversal.

GCs now have a critical window to create pivot strategies to deal with any future tariff changes.

Contracts are the legal infrastructure of every enterprise—and GCs are the architects of resilience. Now is the time to audit, renegotiate, and fortify.

It's important during times of geo-political uncertainty to understand how contract intelligence tools can be leveraged to understand critical terms across a corpus of documents at once. This intelligence can fuel further conversations with the C-Suite to advise and guide company strategy, ensuring that profit margins are protected and risks mitigated.

Collecting data by quickly answering the following questions across document sets gives GCs the head start they need to liaise effectively with CFOs, COOs and other stakeholders to align on the next steps.

Which contracts are impacted by changing tariff regimes?

• Do contracts allow for price adjustments if tariffs are imposed or increased?
• Which parties bear the cost of new tariffs—your company or your suppliers/customers?
• Can you terminate, suspend, or renegotiate the contract based on tariff events?
• What is the cost/risk of staying in or exiting the contract?
• Are there jurisdictional or dispute resolution challenges to renegotiation?

Here are the 10 areas of focus to drill down into. Robin can surface this data, creating structured data and giving straight answers to important questions, without the manual work to sift through all your contracts to uncover this information.

1. Change in law clauses need scrutiny

Tariff-related disruptions fall squarely into the “change in law” category, but only if contracts say so. GCs should review whether these clauses:

• Cover foreign laws and regulatory shifts.
• Trigger renegotiation rights or automatic pricing reviews.

AI impact: Use Legal AI to identify and analyze which agreements include (or lack) robust change in law clauses.

2. Pricing mechanisms have to be adaptive

Tariffs introduce volatility. Contracts that lock in fixed pricing without adjustment options expose the business to margin erosion.

AI impact: Leverage clause analytics to flag pricing mechanisms, fixed and variable pricing terms and highlight contracts without built-in cost pass-through options.

3. Force majeure and hardship clauses may not be sufficient

Traditional force majeure language may not cover tariffs or political decisions. GCs should evaluate whether hardship clauses allow for commercial rebalancing.

AI impact: Cluster and benchmark force majeure and hardship language, get summaries of force majeure provisions, identify specific language like "tariffs" or "embargoes" that has been used in force majeure clauses. Quickly identify exposure and prioritize renegotiation targets.

4. Termination rights aren’t always accounted for

When trade conditions shift, and margins become negative, one party may want or need to walk away from a partnership. GCs should know:

• What triggers termination rights in contracts.
• Whether the company can terminate—or be terminated—without penalty.

AI Impact: Flag termination provisions, get quick answers to questions about termination for convenience and possible penalties. Filter and sort information to identify where the business may be at risk in the case of production cost rises due to tariffs.

‍

5. Dispute resolution requires a cross-border lens

Tariff disputes often become jurisdictional, and companies can spend billions litigating the contents of their contract clauses, rather than the issue at stake. GCs must assess:

• Whether arbitration or litigation is the default.
• Which jurisdictions and courts govern resolution.

AI impact: Certain jurisdictions may be higher risk in this climate and AI tools can extract governing law and forum clauses across your portfolio, and categorize answers into specific risk levels helping legal teams plan for cross-border enforcement complexity.

6. Country-of-origin warranties are critical

The U.S. is expected to crack down on transshipment and mislabeling to avoid tariffs. Contracts should include clear obligations around country-of-origin disclosure, as these are used to dictate which tariff is due over the product.

AI impact: Identify whether contracts contain compliance-related warranties and highlight inconsistencies across suppliers.

7. Incoterms and delivery terms affect risk allocation

International Commercial Terms (Incoterms) define the responsibilities of buyers and sellers in international trade transactions. Delivery terms like Delivery Duty Paid (DDP) or Free on Board (FOB) determine who pays duties and who is liable at what point in the supply chain. These are often overlooked—but critical under a tariff regime.

AI impact: Parse and summarize Incoterms across global contracts, helping GCs understand risk allocation across different tariff regimes in minutes.

8. Subcontractor flow-downs are often weak or missing

Supplier and subcontractor obligations are some of the most overlooked contract provisions. They bind the subcontractor to the same terms and conditions of the primary contract, but when they don’t flow down effectively, this creates gaps. For example, if the primary contract allows the owner to audit the contractor to verify costs, the flow-down contract has to allow the contractor to audit the subcontractor.

AI impact: Identify where key clauses (like origin declarations or tariff compliance) are missing from downstream contracts, to be able to ensure compliance with any new or existing tariff regimes.

‍

‍

9. Ambiguities in definitions cause disputes

Vague or outdated definitions of "tariffs," "duties," or "trade restrictions" can cause confusion, especially with shock events like the wide-ranging tariffs we’re currently seeing. Contracts must reflect today’s legal and regulatory landscape to avoid litigating about definitions in the future.

AI impact: Models can detect outdated or inconsistent definitions, giving GCs a blueprint for updating playbooks and clause libraries.

10. Reopener clauses can be a safety net—if they exist

Rather than litigating every impact, some contracts include renegotiation provisions triggered by major trade shifts. These are invaluable when used, but not widespread in contracts.

AI impact: Surface rare reopener clauses across thousands of existing contracts and prepare briefings for wider legal organisation about where these should be added in new contracts or renegotiations.

How legal AI empowers strategic legal counsel

For enterprise legal teams facing time-sensitive risk across thousands of contracts, traditional manual review isn’t scalable and can’t keep up with the current pace or the levels of uncertainty seen in the legal landscape. Legal AI can:

• Analyze contracts in bulk, flagging risk exposure in real time.
• Benchmark clause language to recommend stronger alternatives.
• Generate reports that legal teams can present directly to the C-suite or board.
• Automate workflows that connect legal analysis to contract management and procurement action.