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ARTICLE · 03 MARCH 2025

Use The Force (Majeure)? Considering The Application Of Force Majeure Clauses To Tariffs

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Tariffs (and threats of tariffs) have been keeping business leaders up at night across Canada and the United States since the inauguration of President Trump.

CanadaInternational Law
Alex Tanenbaum
Alex Tanenbaum
Shalom Cumbo-Steinmetz
Shalom Cumbo-Steinmetz
Steven Slavens
Steven Slavens
Robin Asgari
Robin Asgari
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Torys' Canadian and New York offices will be providing regular briefs on the legal ramifications of the tariffs and other cross-border policy developments on the horizon.

Tariffs (and threats of tariffs) have been keeping business leaders up at night across Canada and the United States since the inauguration of President Trump. The price of goods ratcheting up significantly, or those goods not being available at all, could be the difference between a good or bad deal in many cases. When deals turn bad as a result of tariffs (or retaliatory tariffs), market participants will sometimes turn to their contracts to see if they have a right to walk away.

In the circumstances, the contractual clause many parties will be assessing is the force majeure clause, if the contract includes one.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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