Tariffs Increasing Growth? Make Sure Your Legal Foundation Can Handle It

The latest round of tariffs has weighed heavy on global trade, but for many U.S. manufacturers, it’s opened doors to new customers and expanded operations. As you take advantage of this unique moment, don’t overlook the legal complexities that come with rapid growth.

Here are a few key legal issues to consider if tariffs are increasing your growth:

• Contract Review and Negotiation: When onboarding new clients, it’s vital to draft and review comprehensive agreements that protect your business interests. A well-drafted contract should clearly define each party’s roles, specifications, pricing, payment terms, deliverables, and dispute resolution. Additionally, confidentiality and non-compete clauses can safeguard your proprietary information and business relationships. Leveraging lawyer-approved templates or consulting with legal professionals can help ensure your contracts are both clear and enforceable. Lastly, engaging in skilled negotiation, supported by legal professionals, can help you secure favorable terms, address potential risks up front, and ensure your contracts are both clear and enforceable.

• Compliance with Trade Regulations: Tariffs and trade laws are experiencing recent and frequent changes, which can directly impact your costs and supply chain. Staying current with evolving regulations is crucial to avoid costly penalties, shipment delays, or compliance issues. Your contracts should explicitly require adherence to all relevant local and international trade laws, customs requirements, and import/export standards.

• Intellectual Property Protection: As your business grows and gains visibility, the risk of competitors attempting to copy your products or processes may increase. Protect your designs, patents, trademarks, and proprietary information by including clear intellectual property (IP) clauses in your contracts. These should specify ownership rights, permitted uses, and confidentiality requirements, and outline remedies for infringement or unauthorized disclosure. Registering your IP and monitoring for potential violations are also essential steps to safeguard your competitive edge.

• Employment Law: Meeting increased demand may require expanding your workforce. Therefore, you should ensure all employment practices comply with federal and state laws, including proper worker classification, wage and hour regulations, and workplace safety standards. Your employment contracts should be clear, and your employee handbooks updated. This not only protects your business from legal disputes but also fosters a fair and compliant workplace environment.

• Dispute Resolution: Growth can bring about disagreements with clients, suppliers, or employees. To address these efficiently, ensure your contracts contain robust dispute resolution clauses, such as mediation or arbitration procedures, to resolve issues without resorting to costly litigation.

A business attorney isn’t just a problem-solver-they’re a growth partner. From drafting airtight contracts to advising on compliance and risk management, legal counsel can help you scale confidently and avoid pitfalls that could derail your momentum. Check out our legal resources for more information on supporting your business.