When buying a guitar teaches you International Trade Law – Contracts in a world of shifting tariffs
Sometimes, a simple purchase tells you everything you need to know about the state of global trade.
Take, for example, a recent attempt to buy a handmade guitar from California. Beautiful craftsmanship, reputable maker—yet the deal fell through. Why? No one could say what the final delivery cost would be. Tariffs, duties, and unpredictable logistics costs made it impossible to fix a price.
This isn’t just a buyer’s frustration, it reflects a broader reality in international commerce: cross-border contracts are being tested by trade volatility.
Legal uncertainty becomes commercial risk
In recent months, we’ve seen a clear increase in contract disputes, renegotiations, and delays triggered by:
- New or revised tariffs
- Import/export restrictions
- Government-imposed sanctions or trade measures
Standard contract templates are no longer enough. At TRUST, we’re helping companies adjust to this environment with targeted legal solutions.
What we’re now including in international agreements
Our cross-border contract work increasingly includes:
- Tariff Adjustment Clauses: Triggered by newly imposed or increased duties and trade rules.
- Cost threshold clauses: Allowing renegotiation if materials or logistics exceed a set percentage (e.g., 5%).
- Expanded Force Majeure definitions: Covering trade-related government actions that materially hinder performance.
- Transparency provisions: Requiring clear documentation of increased costs.
- Fast-track dispute mechanisms: To ensure issues don’t escalate into delivery disruptions.
The objective is simple: protect the relationship while enabling flexibility.
What should businesses do now?
If you’re sourcing internationally, selling across borders, or impacted by changing tariffs or customs rules, now is the time to review your contracts. Risk allocation must reflect reality—not just optimism.
TRUST helps clients in supply, manufacturing, and technology sectors draft agreements that are clear, fair, and built for real-world volatility.
Need guidance or example clauses? Contact us, we’re happy to help.
Jan Lindberg, Partner