Tariff Whiplash Has Automotive OEMs Rethinking U.S. Strategy — Here’s Why Contracts Are the Key to Regaining Control

Few industries have felt the impact of the global trade wars more acutely than automotive.

European automakers  are considering whether they can afford to operate in the United States, while U.S. automakers are reviewing their manufacturing footprints in Canada and Mexico. Every carmaker is rethinking how they operate under this new trade order.

The Problem: Automakers Lack Contract Visibility

Every tariff scenario comes with a set of urgent questions:

• Who bears the cost under our current supplier agreements?
• Do we have levers to renegotiate pricing if our margin gets squeezed?
• What terms apply to canceling or redirecting shipments across markets?

These questions aren’t hypothetical — they’re written into your contracts. But in many automotive enterprises, contracts are scattered across systems, countries, and formats. Manual review is slow, and decisions get made before the facts are known.

That’s where contract intelligence comes in.

The Solution: Contract Intelligence for a Volatile Trade Landscape

In an environment where political shifts can upend trade flows overnight, the ability to respond quickly isn’t just nice to have — it’s a strategic imperative. Traditional contract management tools simply can’t keep pace with the speed and complexity of global tariff policies.

Contract intelligence platforms like Icertis are built for this challenge.

By transforming static contract documents into structured, searchable data — and connecting that data with ERP, supply chain, and risk management systems — these platforms give automakers the insight and agility needed to protect their margins and maintain business continuity.

Here’s how:

Identify exposure in real time

AI can automatically surface clauses related to incoterms, pricing adjustments, tax liability, and termination rights across thousands of supplier and customer agreements — helping you pinpoint where tariffs will bite.

Enable proactive renegotiation

Instead of reacting after the damage is done, contract intelligence flags high-risk agreements and empowers legal and procurement teams to engage suppliers early with data-backed options.

Ensure commercial alignment

When trade terms shift, contracts must reflect the new reality. Automated workflows ensure pricing, delivery obligations, and legal terms stay synchronized across internal systems and external partners.

Support smarter scenario planning

By analyzing contractual rights and obligations across geographies, companies can model different trade policy outcomes and develop contingency strategies — including alternative sourcing or market exit plans — with full visibility into contractual implications.

Accelerate compliance and communication

When leadership needs answers fast, contract intelligence gives you a single source of truth to guide responses — no more chasing down PDFs or interpreting legalese in isolation.

Unlock intent realization

Link Contractual meta-data and direct procurement systems to ensure Pricing and SLA commitments agreed to by Suppliers are achieved operationally across Purchase Orders and Invoices. To ensure negotiated pricing incentives, promotions, rebates and other cost protections are enforced to help mitigate pricing volatility.

Get the Full Perspective

In short, contract intelligence equips automotive leaders to turn chaos into clarity, making it possible to move from reactive firefighting to confident, data-driven decision-making — even in a rapidly shifting geopolitical climate.

Learn more in our whitepaper,   "The Critical Role of Contract Intelligence in Navigating Tariff Challenges."