Tariffs do more than raise your costs; they can put your contracts and business relationships at risk. If you rely on imported goods or international partners, recent trade policy changes could impact how you fulfill agreements. As a Texas business owner, you need to recognize the legal risks and take steps to protect yourself.
How tariffs can disrupt your contracts
New tariffs can drive up costs and make it harder to meet contract terms. If you depend on global suppliers or imported materials, this added expense can delay shipments, cancel orders, or damage long-standing partnerships.
These disruptions often lead to contract disputes that cost time, money, and trust.
Common contract disputes caused by tariffs
Tariffs often trigger breach of contract claims. One party might refuse to deliver goods, raise prices without agreement or demand changes mid-contract. Disagreements also arise when either party wants to cover the unexpected costs, or when someone claims a force majeure clause should apply.
If your contract lacks clear terms about price changes, trade-related delays or risk-sharing, you increase your chances of a legal fight. You can prevent most of these problems by acting before conflict begins.
What to do before a dispute starts
You can lower your legal risk by reviewing and updating your contracts, focusing on the areas most affected by tariffs:
- Contract review: Check pricing, delivery timelines and force majeure clauses
- Risk updates: Renegotiate outdated terms to reflect current trade realities
- Clause clarity: Add language that defines who pays for tariff-related costs.
- Legal guidance: Work with a Texas business attorney to evaluate risk and revise terms
- Documentation strategy: Keep records of all contract changes and communications between parties involved.
Taking these steps now gives your business a stronger position if a dispute arises. Preparing early helps you avoid legal trouble in the future.
Don’t wait for a dispute to catch you off guard.
Tariffs can disrupt your business, but they don’t have to lead to lawsuits. When you review your contracts and address risks early, you protect your business, reputation and your profits. If you feel that your contracts are not up to date, consult with a Texas business attorney to reduce your exposure to contract disputes, unexpected costs and legal liability and strengthen your legal position.