Negotiating Uncertainty: Legal Options for Manufacturers Confronting Tariffs,” written by Kerr Russell attorneys Daniel Ferris and Derek Boyd.
Download article here.
The piece details the implications of recent tariffs imposed on steel and aluminum articles imported into the US from countries other than Argentina, Australia, Brazil, and South Korea. A timely topic, the story and its impacts continue to unfold daily. We hope you find this a useful resource for your business planning purposes.
Excerpt: “Anticipation of the tariffs was enough to contribute to increases in steel prices in the months leading up to the official announcement, and the last-minute exemptions issued to a number of impacted countries, as well as the view that the tariffs are being used as leverage in negotiations relating to U.S. trade agreements, has contributed to widespread uncertainty about the precise effect the tariffs will have on prices over time. At a minimum, however, the tariffs will impact many companies involved in manufacturing, including the automotive industry, and could cause supply-chain disputes between manufacturers and suppliers of steel and aluminum components. Many companies are parties to long-term, fixed-price contracts for the supply of components, and such arrangements are directly impacted by significant fluctuations in raw material prices. Suppliers of steel and aluminum products may determine that these contracts are no longer profitable as written following an increase in the market price of steel and aluminum and may wish to renegotiate contract prices as a result.”