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International trade

Tariff Turbulence: How Trade Volatility is Reshaping Corporate Strategy and Contracts

Strategic Insights

— 2 min read

Global trade tensions and tariff uncertainty are redefining supply chains and commercial relationships, forcing companies to adapt quickly to changing regulations. According to a survey of over 600 legal and procurement professionals, companies are now including tariff-related clauses in their contracts at an unprecedented rate, marking a seismic shift in how organizations respond to global trade disruption. As a result, contracts have become critical tools for strategic decision-making, but they also pose significant operational and financial pressures.

Key Takeaways:

  • 92% of companies now include tariff-related clauses in their contracts, a significant increase from previous years.
  • 73% of respondents agree that tariffs have increased contract complexity and made contract management more challenging.
  • 71% of respondents reported higher costs due to tariffs, with 55% citing increased focus on compliance and legal review processes.
  • 40% of respondents stated that contracts are taking longer to review and approve.
  • 92% of organizations have hardwired tariff-related language into their standard contracts.
  • The primary threat from tariffs is increased costs of imported materials and products (49%), followed closely by customer pricing and demand pressures (47%).
  • Regulatory uncertainty and compliance challenges rank as the third-biggest concern (44%), followed by reduced profit margins (42%).
  • Tariff uncertainty is straining supplier relationships and procurement processes, with 32% of companies reporting disruption to global supply chains as one of their biggest tariff-related risks.
  • 48% of U.S. companies and 52% of UK respondents have exited existing supplier relationships due to tariff impacts.
  • 54% of all respondents stated tariff-related pressures have led them to enter new supplier relationships in unfamiliar markets or regions.

Statistics:

  • 92% of companies now include tariff-related clauses in their contracts.
  • 73% of respondents agree that tariffs have increased contract complexity and made contract management more challenging.
  • 71% of respondents reported higher costs due to tariffs.
  • 55% of respondents cited increased focus on compliance and legal review processes.
  • 40% of respondents stated that contracts are taking longer to review and approve.
  • 92% of organizations have hardwired tariff-related language into their standard contracts.
  • 49% of respondents identify increased costs of imported materials and products as their primary threat.
  • 47% of respondents worry about the impact on customer pricing and demand.
  • 44% rank regulatory uncertainty and compliance challenges as their third-biggest concern.
  • 42% of respondents report reduced profit margins as a tariff-related risk.
  • 32% of companies report disruption to global supply chains as one of their biggest tariff-related risks.

Sources:

  • "Navigating Tariff Turbulence: The Operational Impact of Global Trade Policies on Contract Management" report by Agiloft
  • Agiloft press release, "Agiloft Releases Industry Report: 'Navigating Tariff Turbulence: The Operational Impact of Global Trade Policies on Contract Management'" (Sept. 16, 2025)
  • Agiloft website, "Data-First Agreement Platform (DAP)"
  • Agiloft website, "About Agiloft"
  • Methodology statement, "Survey conducted among 627 legal and procurement professionals (521 in the US, 106 in the UK) across organizations of varying sizes."

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