Global Trade Chaos Forces 92% of Organizations to Rewrite Contracts, Agiloft Report Reveals

Survey of 600+ legal professionals exposes how trade volatility is rewriting corporate strategy, warns of lasting impacts on cost, compliance, and supplier relationships

REDWOOD CITY, Calif., Sept. 16, 2025 /PRNewswire/ -- As global trade tensions continue to reshape supply chains and commercial relationships, Agiloft, the global leader in data-first contract lifecycle management (CLM), today released its latest industry report: "Navigating Tariff Turbulence: The Operational Impact of Global Trade Policies on Contract Management." The report reveals that 92% of companies now include tariff-related clauses in their contracts, marking a seismic shift in how organizations respond to global trade disruption.

Based on a survey of more than 600 legal, procurement, IT, and finance professionals across the U.S. and U.K., the results paint a stark picture: contracts are critical tools on the front lines of strategic decision-making as tariffs and political uncertainty reshape global commerce. Organizations are simultaneously dealing with more frequent contract revisions, longer review cycles, and the need for enhanced cross-departmental collaboration, all while facing significant cost pressures and regulatory uncertainty.

The report also nods to a cascade of operational and financial pressures stemming from tariff complexity. The survey found that organizations are struggling most with tracking and applying the constant stream of tariff-related updates (53%), while over 49% are overwhelmed by the sheer volume of contracts requiring review and renegotiation. This burden extends beyond legal teams –38% of U.S. respondents cited lack of real-time collaboration between legal, procurement, and finance departments as a major hurdle, while nearly 42% of UK respondents are hindered by insufficient contract analytics or intelligence.

"Geopolitical volatility is now an everyday reality that demands constant adaptability," said Prashant Dubey, Chief Strategy Officer at Agiloft. "This report makes it clear: today's legal leaders are navigating unprecedented complexity and solid contracting processes have emerged as critical levers for ensuring resilience and managing unpredictability. From containing supplier costs to accelerating deal cycles, contracts are central to protecting margins and unlocking value. Yet, many organizations still lack good data-driven contracting process hygiene. CLM with integrated, fully configurable AI is the catalyst that transforms contracts into strategic assets and operational instruments to maintain key customer and supplier relationships in the face of constant turbulence."

Incorporating trade-related language into contracts is now standard practice. While this helps companies mitigate exposure to sudden cost shifts or supply chain disruptions, it also increases the burden on legal teams to efficiently draft, review, and manage increasingly complex language across numerous agreements. This shift is driving significant changes in how organizations manage their contracts:

• 92% of organizations now have hardwired tariff-related language into their standard contracts
• 73% of respondents agree that tariffs have increased contract complexity and made contract management more challenging, and 71% reported higher costs
• 55% report increased focus on compliance and legal review processes
• 40% state that contracts are taking longer to review and approve

The report reveals a ripple effect of operational and financial challenges caused by tariff complexity, leading to substantial business risks that extend far beyond compliance issues:

• Nearly half of organizations (49%) identify increased costs of imported materials and products as their primary threat
• 47% worry about the impact on customer pricing and demand – suggesting tariffs are creating pricing pressures that squeeze companies from both directions
• Regulatory uncertainty and compliance challenges rank as the third-biggest concern (44%), followed closely by reduced profit margins (42%)

Tariff uncertainty is fundamentally straining supplier relationships and procurement processes. More than one-third of companies report that contracts with suppliers or clients are being renegotiated more frequently due to changing trade regulations, while 32% identify disruption to global supply chains as one of their biggest tariff-related risks.

• 48% of U.S. companies and 52% of UK respondents have exited existing supplier relationships as a direct result of tariff impacts
  • Notably, UK organizations express significantly greater concern about supply chain disruption (45%) compared to their US counterparts (30%)
• 54% of all respondents state tariff-related pressures have led them to enter new supplier relationships in unfamiliar markets or regions
• Over 57% said tariffs have made supplier onboarding and compliance checks more complex or time-consuming

Due to the overwhelming findings and the clear need for actionable solutions, Screens, acquired by Agiloft in January 2025, provides practical, playbook-driven guidance to help organizations navigate tariff-related contract risks. With three dedicated playbooks – a Buyer's Perspective for supplier contracts, a Seller's Perspective for commercial obligations, and Key Terms to Know for quickly identifying tariff-relevant clauses – Screens enables legal teams to analyze contracts in real time, reduce manual work, and make faster, more informed decisions while maintaining compliance and visibility across the business.

To meet the increasing demands of today's volatile trade environment, Agiloft's CLM platform built with AI on the inside™ provides a competitive advantage that fundamentally modernizes how organizations operate. With AI fully embedded at every stage of the contract lifecycle, Agiloft enables data-driven reviews that reduce initial review times by up to 80%, GenAI agents that accelerate approval cycles, and rapid analysis of hundreds of contracts to uncover hidden risks. With AI at its core, Agiloft helps organizations accelerate business, improve visibility, and optimize contracting processes amid political and regulatory uncertainty.

For full insights, download the complete report here: Navigating Tariff Turbulence: The Operational Impact of Global Trade Policies on Contract Management. To learn more about report findings, register here for an exclusive webinar, Navigating Tariff Turbulence: Why Every Contract Needs Political Risk Planning – to Protect Your Business from Looming Policy Threats, happening on Thursday, September 18, 2025.

Methodology
The survey was conducted among 627 legal and procurement professionals (521 in the US, 106 in the UK) across organizations of varying sizes. US Respondents included C-suite executives (10%), VPs/SVPs (8%), General Counsel (18%), Directors (27%), and Managers (38%), representing companies from small businesses to large enterprises.

About Agiloft
Agiloft is the global value leader in data-first contract lifecycle management (CLM), offering the industry's only no-code platform with AI on the Inside™ to enhance efficiency, cut review times by up to 80%, and accelerate business. Its Data-first Agreement Platform (DAP) transforms contracts into strategic, data-rich assets, integrating with 1,000+ systems to drive decisions and efficiency. Trusted by brands like Alkermes, Balluff, and TaylorMade, Agiloft boasts a 96% renewal rate and 100% satisfaction for implementations. Backed by KKR, JMI Equity, and FTV Capital, Agiloft empowers businesses to drive smarter strategies, faster decision-making and game-changing competitive advantage. Learn more at www.agiloft.com.

Media Contact
Angel Duan
Senior Manager, Corporate Communications
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(650) 780-6741 ext. 5775

SOURCE Agiloft