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ARTICLE · 14 APRIL 2025

Impact Of Recent U.S. Tariffs On Material Adverse Change And Force Majeure Clauses

Farrell Fritz
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The recent imposition of tariffs by the U.S. government has introduced significant complexities in contractual performance and risk allocation.

United StatesInternational Law
Rodion Lerman
Rodion Lerman

The recent imposition of tariffs by the U.S. government has introduced significant complexities in contractual performance and risk allocation. It is important to assess how these tariffs may influence material adverse change (“MAC”) and force majeure clauses within your contracts.

Material Adverse Change Clauses:

MAC clauses are designed to protect parties from significant unforeseen events that adversely affect the financial or operational conditions of a business. The imposition of tariffs can qualify as a material adverse change if they lead to substantial cost increases or operational disruptions. It is crucial to review the specific language of your MAC clauses to determine if tariffs are explicitly covered and to assess the materiality of their impact.

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