Skip to content
Aavenir Atlas early access is open Contractflow on the ServiceNow Store since 2019 Runs on ServiceNow, or standalone ProcureTech100 2025/26 Pioneering Digital Solution ISO/IEC 27001:2022 certified, SOC 2 Type 2 compliant
Contract risk management

How contract management helps you handle tariffs, policy shifts and supply chain disruption

Tariffs are a trade story in the news and a contract story inside your business.

SMSunil MasandFeb 18, 2025 · 4 min read

In early 2025 the US administration announced new tariffs on imports from Canada, Mexico and China, with dates that moved more than once. Since then, trade policy has kept shifting, and new executive orders affecting funding have added another layer. For chief revenue, procurement and legal officers, these are not just headlines. They hit the contracts that set your prices, your suppliers and your margins.

We have updated this post for 2026 readers. The specific tariffs will keep changing, but the playbook does not: find the contracts exposed, understand what their clauses allow, and act across the portfolio quickly. Contract lifecycle management is what makes that possible at enterprise scale.

Why do tariffs matter to your contracts?

Contracts are living documents that have to keep up with market conditions. A policy shift raises four questions every leadership team should be able to answer quickly:

  • Who absorbs the cost increase: your business, your customers or your suppliers?
  • Are your contracts flexible enough to adapt to new trade conditions?
  • How do you avoid disputes, delays and supply interruptions while terms are renegotiated?
  • Can you find every affected contract by geography, supplier, product, clause language or price protection?

If the last question takes weeks of manual review, the others cannot be answered in time.

Which contract terms carry hidden tariff risk?

Pricing clauses that did not plan for this

Many agreements fix prices for the term with no mechanism for new duties. If you import parts, components or materials that now carry tariffs, fixed pricing can leave you holding the increase. Automakers, for example, were already weighing price rises and new suppliers as the tariff threat grew (WSJ).

Force majeure and hardship clauses

Some suppliers will try to invoke force majeure or hardship to renegotiate or exit. A tariff change may not qualify as an unforeseeable event under the wording you signed, which can leave both sides stuck. Work with legal to read the actual language before anyone relies on it, and decide where renegotiation is the better route.

Sourcing shifts and delivery risk

Suppliers respond to tariffs by moving production, and some Chinese manufacturers began shifting work to other countries to reduce exposure to US duties (The Times). A new source can change delivery timelines, country of origin and compliance requirements, all of which your contract may specify.

How do you find the contracts that are affected?

Whether the trigger is tariffs, a pandemic or a regional conflict, the first job is the same: find the exposed contracts fast. Natural language search across the whole portfolio lets teams:

  • Filter contracts by region, supplier and product to locate agreements with exposure
  • Search for price adjustment, exclusivity and force majeure clauses
  • Find cost pass through obligations that could create financial or compliance risk

A bank with outsourcing agreements across several regions, for instance, needs to know whether cost increases from a supplier trigger penalty or renegotiation clauses. AI contract search and Aavenir Atlas answer these questions across every signed agreement, with a link to each clause.

Which clauses should you read first?

Once you have the list, read the terms that decide your options. AI can summarize them across hundreds of agreements, and your legal team confirms the reading.

Clause The question it answers
Exclusivity Can we source elsewhere if this supplier's costs rise?
Pass through Can we pass increased costs to our customers?
Price change Under what conditions can either side adjust prices?
Termination and amendment Can we exit or renegotiate, and with how much notice?

Notice periods matter more than people expect. If a logistics contract requires long termination notice, a retailer may not be able to switch providers before costs land, and will need to look for other levers in the agreement.

Why do buy side and sell side contracts both matter?

Most enterprises carry exposure on both ends at once. On the buy side, supplier contracts determine who bears new costs. On the sell side, customer contracts determine whether you can keep your commitments and whether you can renegotiate. An automotive parts supplier facing higher material costs, for example, has to weigh its purchase agreements and its sales agreements together. For more on the difference, read buy side vs sell side contracts.

How does supplier performance history help?

Visibility is not only about what the contract says. It is also about how each party has performed. With obligations tracked over time, teams can see which suppliers have missed commitments before, which obligations are most at risk under new conditions, and where financial exposure is concentrated. A hospital network, for example, can use supplier delivery history from past disruptions to choose sources under new tariffs. Obligationflow keeps that record.

What workflows turn visibility into action?

Knowing is only half the job. Your contract system also has to let you respond quickly:

  • Mass amendments: update pricing, payment terms and conditions across many contracts at once. See mass contracts.
  • New templates: publish compliant templates for new supplier arrangements without system downtime.
  • Faster approvals: set up expedited approval routes for emergency sourcing changes.
  • Pause or hold: suspend agreements temporarily while policy is uncertain.

A multinational bank facing a rule change, for instance, can search for every vendor contract containing a specific clause and then trigger one amendment across all of them.

Want to see which of your contracts are exposed? Bring a sample of supplier agreements. We will search them for pricing, pass through and force majeure terms with Aavenir Atlas.
Schedule a demo

The bottom line

Tariffs are not just a trade issue. They are a contract issue. Companies that can find their exposed agreements, read the clauses that matter and amend at scale protect their margins and their supplier relationships. If you have not reviewed your contracts against the latest policy changes, start now.

Frequently asked questions (FAQ)

Frequently asked questions

Do force majeure clauses cover tariffs?

Often not clearly. Many force majeure clauses list events such as natural disasters or war, and a tariff change may not count as unforeseeable under that wording. Read the exact language with legal before relying on it, and consider renegotiation instead. AI contract search finds these clauses across your portfolio.

How can a company find contracts affected by new tariffs?

Search the portfolio by region, supplier, product and clause type, such as price adjustment, pass through and termination. That requires contract data extracted into structured fields, not just stored files. Aavenir Atlas answers these questions across every signed agreement with links to the clauses. See Aavenir Atlas.

What should procurement do first when tariffs change?

Identify exposed supplier contracts, read their pricing, pass through and exit terms, and check supplier performance history. Then decide where to renegotiate, re-source or amend in bulk, and set up fast approvals for urgent sourcing changes. Read how this works for procurement teams.

Have a question we have not answered? Ask the Expert

Keep reading

Contract risk management Six ways contract lifecycle management reduces business risk Financial, operational, legal, reputational, regulatory and supply chain risks all start in contracts. Here is how contract lifecycle management reduces each.Read more Contract management Buy side and sell side contracts: key differences and how to manage both How buy side and sell side contracts differ in goals, owners, clauses and risks, what they share, and why many enterprises manage both in one contract system.Read more Contract data and AI Contract data management: how to get insight from contract data What contract data management is, the five types of contract data to track, why it matters and six practices for keeping contract data accurate and useful.Read more

Schedule a demo

See your contracts run on one record.

  • 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
  • 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
  • 3 ServiceNow or standalone We show the deployment that fits the systems you already run.

Prefer to talk first? Contact the team.