Volatile U.S. tariff announcements continue to affect international supply chains for U.S. construction projects. Although recent litigation has centered on the scope of presidential tariff authority rather than construction‑specific disputes, these decisions carry important implications for how parties structure risk in their contracts. In May 2025, the U.S. Court of International Trade (CIT) struck down
In light of recent disputes, international construction firms are rethinking how they draft force majeure and price escalation provisions to better address tariff-induced cost increases. While traditional force majeure clauses often focus on physical impossibility or natural disasters, they should now explicitly include governmental actions such as the imposition or increase of tariffs.
President Trump has issued three executive orders imposing new tariffs on imports from Canada, Mexico, and China effective February 4th. Canada has responded with retaliatory tariffs on imports from the U.S. On February 3rd, the U.S. and Mexico reached a deal to delay the start of U.S. tariffs for one month.
The de