Trump’s tariffs: no time for complacency, warns Clarke Willmott
14th April 2025, 2:39 pm
While President Trump’s announcement of a 90-day tariff pause is dominating the headlines, businesses in Manchester and the North West can’t afford to sit back and wait to see what happens next, says leading national law firm Clarke Willmott LLP.
With tariffs poised to affect a wide range of UK sectors, especially those with strong reliance on global supply chains like manufacturing, automotive and pharmaceutical, the firm says now is the crucial time for businesses to prepare for the full effects if the temporary pause is lifted.
Business leaders in Greater Manchester have warned of “one of the most challenging periods in trade history” after Donald Trump imposed tariffs on all UK exports to the US, with the Greater Manchester Chamber of Commerce highlighting the US as the region’s largest trading partner.
“There are legal avenues available for firms to push back – both through contract law and commercial supply agreements – and now is the time to act,” says Stephen Green, a Commercial Partner at Clarke Willmott in Manchester.
“Some businesses can challenge US trading partners who pass on tariff and other costs, especially if pricing terms didn’t foresee such disruption or tariffs. Others may have grounds to terminate or renegotiate contracts based on the tariffs’ impact on fulfilment, deliverability or profitability.”
Clarke Willmott is already seeing an increasing demand for commercial legal advice in sectors most exposed to tariff disruption, including advanced manufacturing, engineering, pharmaceutical, life sciences, logistics and technology – all crucial sectors in the economy of Manchester and the North West.
“For mid-sized and larger organisations with existing international supply contracts, there may already be clauses – such as force majeure, VAT or tax provisions, price adjustment or variations, change control, or hardship clauses – that can be leveraged to challenge or renegotiate terms impacted by tariffs, or even pass on the tariff to the other side,” added Stephen Green.
“Meanwhile, industries with strong trade bodies or regulatory oversight, like pharmaceutical, life sciences, tech, and manufacturing, could benefit from collective lobbying or industry-wide challenges. Aligning legal strategies with broader efforts in these sectors may help mitigate the impact of tariffs.
“Firms in supply chains that include cost-sharing, change control or risk mitigation clauses may also have a strong position to challenge attempts by trading partners to offload tariff costs onto them.”
Stephen Green – who specialises in commercial and technology law – says reviewing your contracts early and then acting quickly will ensure businesses can put themselves in a position of strength, minimising negative impact and taking full advantage of any legal and strategic options available.
“Early action allows time for businesses to engage legal advice, renegotiate contracts, or challenge tariff pass-throughs, avoiding costly mistakes and making the arrangement uneconomical. It helps preserve long-term relationships with trade partners and minimises operational disruption.
“Businesses that stay proactive are better positioned to adapt to changes in regulations, comply with new laws, and avoid penalties. Additionally, firms that act quickly can strategically absorb new costs, gaining an advantage over competitors.
“Finally, early intervention increases the chances of utilising contract clauses for renegotiation or adjustments, before disruption causes significant damage.”
Clarke Willmott is a national law firm with offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton.
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