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ARTICLE · 03 APRIL 2025

Why Canadian Contract Law Matters In A Trade War

Torkin Manes LLP
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The decision by the American government to impose tariffs on various Canadian goods has rattled markets and could lead to a recession.

CanadaInternational Law
Marco P. Falco
Marco P. Falco
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The decision by the American government to impose tariffs on various Canadian goods has rattled markets and could lead to a recession.

Apart from the severe economic consequences, a trade war also imposes significant uncertainty on commercial agreements with cross-border components.

Where Canadian contract law applies, corporations should be aware of the legal arsenal they may have at their disposal to enforce obligations or end their agreements entirely.

Should the threat or imposition of tariffs continue, these contract law doctrines will prove paramount in the months to come.

With the help of legal counsel, Canadian businesses must strategize to make the most of contractual principles and provisions that could provide a remedy. These doctrines include the following:

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