Retailers Face Tariff Turbulence: How AI-Powered Contract Intelligence Can Help

In today’s globalized economy, retailers depend on a vast and complex web of overseas suppliers to keep their shelves stocked and customers satisfied.

This makes the retail industry especially vulnerable to trade disruptions like tariffs. From apparel to electronics to home goods, many retail products depend on components or finished goods sourced from overseas. In fact, a single retailer may rely on thousands of global suppliers to keep shelves stocked and customer expectations met.

When tariff policies shift, retailers don’t just face higher costs; they face complexity at scale.

To respond, retailers must have a firm grasp on the specific rights and obligations contained in their contracts, which are the single source of truth for the “rules of business” between retailers and their suppliers. They define who bears the cost of tariffs, whether prices can be renegotiated, how and when goods must be delivered, and what happens when obligations can’t be met. When new tariffs are introduced—as we’ve seen in 2025—being able to instantly access and understand these terms isn’t a legal nicety. It’s a business necessity.

Yet many retailers still struggle to locate, interpret, and act on their contracts at scale.

In an era of trade volatility and rising costs, retailers need clear visibility into their supplier agreements—and the ability to respond with speed. That’s where contract intelligence comes in.

Key Contract Terms That Impact Tariff Response

Tariff-related risk and opportunity are embedded in the fine print of supplier agreements. Retailers must pay close attention to specific terms that define how tariff shocks are absorbed, shared, or avoided. Commonly relevant terms include:

• Force Majeure: May excuse or delay performance when unforeseen government actions—like tariffs—disrupt supply.
• Price Adjustment Clauses: Allow renegotiation of terms if material costs change due to new duties or tariffs.
• Termination for Convenience: Provides an exit path when a contract becomes economically unviable.
• Incoterms: Define the responsibilities of buyers and sellers in cross-border transactions..
• Sourcing Flexibility Provisions: Enable buyers to reallocate orders or find alternate suppliers.
• Tariff Classification: Understanding the specific tariff codes and classifications for your products is essential. This helps in determining the applicable tariff rates and any exemptions

How Icertis Puts Contract Terms into Action

Icertis Contract Intelligence surfaces these terms across all contracts, enterprise-wide, giving retailers a real-time view into the legal and operational levers available to them. With AI-powered search and clause analytics, businesses can:

• Understand the Current Landscape: Instantly identify which contracts contain tariff-related clauses and how they differ across suppliers or regions.
• Accelerate Renegotiations: Use clause benchmarking and AI recommendations to update terms or identify which partners offer greater flexibility.
• Monitor Compliance and Performance: Track whether suppliers are adhering to tariff clauses and ensure changes are reflected in operations.

This visibility and control empower retailers to act decisively—whether renegotiating prices, shifting sourcing, or enforcing obligations—at a pace that keeps up with changing trade policy.

Conclusion

As tariffs continue to reshape the retail landscape, leveraging AI-powered contract intelligence becomes essential for businesses aiming to maintain profitability and resilience. By adopting solutions like Icertis Contract Intelligence, retailers can navigate the complexities of global trade with greater confidence and agility

Want to learn more about how contract intelligence can power your tariff response strategy? Check out our new whitepaper, "The Critical Role of Contract Intelligence in Navigating Tariff Challenges."