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Articles by Marla Tun Reschly
Changes To US Energy And Trade Policy Could Trigger Contractual Relief Mechanisms
The Trump Administration has issued several executive orders and made numerous policy pronouncements that could alter the economics of existing contracts and cause parties to explore new risk sharing mechanisms for future contracts. The primary area of uncertainty relates to tariffs due to their direct impact on the price of materials and equipment.
Changes to US Energy and Trade Policy Could Trigger Contractual Relief Mechanisms
The Trump Administration has issued several executive orders and made numerous policy pronouncements that could alter the economics of existing contracts and cause parties to explore new risk sharing mechanisms for future contracts. The primary area of uncertainty relates to tariffs due to their direct impact on the price of materials and equipment.
“I’m Interested in a Revolution” -- RFK, Jr. Outlines His FDA Priorities in the Regulation of Food Ingredients and Food Packaging
Health and Human Services Secretary Robert F. Kennedy, Jr. recently addressed a diverse group of stakeholders at the “Chemicals of Concern Policy Summit,” stressing the need for industry, regulators, and public advocacy groups—aka non-governmental organizations (NGOs)—to work together to reduce exposures to toxic chemicals, to which Secretary Kennedy attributes, at least in part, to the rise of chronic disease in the United States, particularly in children.
Impact of Tariffs on Commercial Contractual Performance: Can Tariffs Be a Force Majeure Event?
The Trump administration has adopted an aggressive trade policy, announcing a number of actions that will significantly impact global commerce. Most notably, President Donald Trump’s tariffs—and the retaliatory tariffs imposed by other nations—are already impacting suppliers’ and buyers’ ability to perform under commercial contracts. Tariffs may impact contracting parties in a variety of ways, including increasing the cost of performance.
Impact of Tariffs on Commercial Contractual Performance: Can Tariffs Be a Force Majeure Event?
1 Phillips P.R. Core, Inc. v. Tradax Petroleum Ltd., 782 F.2d 314, 319 (2d. Cir. 1985) (noting that the purpose of a force majeure clause is “to relieve a party from its contractual duties when its performance has been prevented by a force beyond its contract or when the purpose of the contract has been frustrated”). 2 N. Ind. Pub. Serv. Co. v. Carbon Cnty. Coal Co., 799 F.2d 265, 275 (7th Cir.
Impact of tariffs on commercial contractual performance: Can tariffs be a force majeure event?
(May 07, 2025) - Marla Reschly, Thomas Allen, Daniel McClurg and Suzi Goebel of K&L Gates LLP discuss how contractual force majeure clauses will apply to situations affected by tariffs imposed under President Donald Trump's administration. The Trump administration has adopted an aggressive trade policy, announcing a number of actions that will significantly impact global commerce.
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