Tariffs have moved from a background policy tool to a central feature of how the United States structures its economic relationships with trading partners. For businesses that import goods, export products, or maintain supply chains that cross national borders, the shifting tariff landscape creates real legal and operational challenges that reward proactive attention rather than a wait-and-see approach.
Mandelbaum Barrett PC’s attorneys contributed analysis to a Law 360 article titled “The New Trade War: How Trump’s Tariffs Are Shaping North America.” The piece addressed the legal and commercial implications of tariff policy for businesses operating in the United States, Canada, and Mexico. The firm’s corporate law practice regularly advises businesses on trade-related matters, contract structuring, and regulatory compliance in a changing economic environment.
How Tariffs Affect Business Contracts and Agreements
One of the most immediate legal questions tariff policy creates is how existing contracts allocate the cost of tariff changes between parties. Many commercial contracts include force majeure clauses, material adverse change provisions, or price adjustment mechanisms that may be triggered by significant tariff increases. Whether a particular tariff increase qualifies under any of these provisions depends on the specific contract language, the applicable governing law, and the nature of the goods involved.
Businesses that entered long-term supply agreements or purchase orders before a significant tariff was announced may find themselves legally obligated to perform at a price that no longer reflects actual costs. Understanding whether a contract provides any legal basis for adjustment or renegotiation, and how to document a dispute if one arises, requires careful legal analysis of the contract’s specific terms.
USMCA and North American Trade Relationships
The United States-Mexico-Canada Agreement (USMCA) governs most trade between the three North American countries and establishes rules of origin, tariff schedules, and dispute resolution mechanisms that interact with additional tariffs the United States imposes outside of that framework. According to the Office of the United States Trade Representative, USMCA provides substantial preferential treatment for goods that qualify under its rules of origin requirements.
Businesses that rely on North American supply chains should understand whether their goods qualify for USMCA treatment and how any additional tariffs interact with USMCA preferences. The intersection of USMCA rules and executive-branch tariff authority has created legal complexity that continues to develop through regulatory guidance and litigation.
Compliance and Documentation in a Tariff Environment
Properly classifying imported goods under the Harmonized Tariff Schedule (HTS) has always mattered, but the stakes are higher when tariff rates are elevated and the rules are shifting. Misclassification can result in overpayment of duties, underpayment that triggers penalties and interest, or missed eligibility for exclusions or refunds that a business is entitled to. Maintaining proper documentation of country of origin is equally important, both for USMCA claims and for compliance with additional tariff regimes.
Contact Mandelbaum Barrett PC for Corporate and Trade Law Guidance
If your business is navigating the impact of tariff policy on contracts, supply chains, or regulatory compliance, the corporate law team at Mandelbaum Barrett PC can help you evaluate your exposure and identify the right legal responses.
Reach out through our contact page to speak with our team. We are here to help you manage legal risk in a fast-moving trade environment.