Companies had anticipated greater clarity on tariffs following the expiration of the Trump administration’s 90-day pause on reciprocal tariffs, which was set to expire just after midnight on July 9. However, President Trump announced on Monday that the pause would be extended until August 1. While the delay may benefit many organizations, it also prolongs ongoing uncertainty surrounding import and export levies and the broader economic outlook.
Here’s what companies should be focusing on while they await greater clarity on U.S. and global trade policy.
2025’s tariff roller coaster
On April 2 — at an event the White House deemed “Liberation Day” — President Trump announced a sweeping new trade policy via executive order (opens a new window). The president’s order declared a national emergency under the International Emergency Economic Powers Act and imposed a 10% baseline ad valorem tariff on imports from nearly all U.S. trading partners, effective April 5.
President Trump also announced higher reciprocal tariffs for imports from a number of trading partners, including:
China (34%).
India (26%).
South Korea (25%).
Japan (24%).
The European Union (20%).
On April 9, just as the higher levies were set to take effect, President Trump signed another executive order (opens a new window) that paused the reciprocal tariffs until 12:01 a.m. EDT on July 9. Notably, the 10% baseline tariff — which took effect on April 5 — remained in place, and the president announced that tariffs on Chinese imports would rise to 125% after China announced the imposition of a retaliatory 84% tariff on American goods. This week, however, yet another executive order (opens a new window) extended the pause on reciprocal tariffs, this time until 12:01 a.m. EDT on August 1.
These developments are part of a broader pattern. Since President Trump returned to office in January, his administration has repeatedly shifted its stance on tariffs, particularly those affecting key trading partners such as Canada, China, Mexico, and the European Union. And while the administration has negotiated some tariff deals, talks with many countries have stalled, and many reciprocal and retaliatory tariffs imposed on U.S. goods remain in place.
All of this has deepened uncertainty for global businesses and made long-term planning a challenge.
Managing risk
Although uncertainty persists, there is a silver lining for multinational businesses: more time to assess and manage risk.
If you haven’t already, now is the time to evaluate your exposure to tariffs, particularly across Tier 1, Tier 2 and Tier 3 suppliers. Gaining visibility into extended supply chains may be challenging — especially with some tariffs already in effect — but it’s essential to managing risks.
It’s especially important to evaluate and update contractual agreements. Many contracts include “force majeure” provisions, but these clauses may not explicitly address tariff-related issues or government actions that disrupt the flow of goods. They may also not clearly address whether customs detentions or retaliatory measures will trigger coverage. Given this, businesses should ensure their contracts with suppliers:
Clearly define indemnification and insurance clauses.
Include provisions around governing jurisdiction.
Address the allocation and renegotiation of responsibilities.
At the same time, organizations should look to build more agile risk management frameworks. Among other actions, consult legal counsel on disclosure obligations to reduce the risk of shareholder litigation, stay abreast of compliance regulatory obligations in countries impacted by tariffs, and allocate resources to prepare for potential supply chain disruptions, recalls, and other tariff-related crisis events.
Finally, review your insurance programs globally. Resist the urge to simply roll over existing programs or cut essential coverage in search of savings — instead:
Ensure values and limits are adequate given rising costs and potential delays or restrictions related to repairs and replacements.
Understand whether business interruption and contingent business interruption will be triggered by tariffs, trade restrictions, delays, route deviations, and other potential risks that could arise given current conditions.
Evaluate the need for trade credit insurance, political risk insurance, parametric solutions, and other risk financing options.
Proactively share with insurers relevant exposures and mitigation efforts related to supply chain continuity, governance, and operational resilience.
These steps can be made easier with the support of an experienced insurance broker that understands the global risk and insurance landscape and can help you make smarter, more informed decisions. The right global broker can work with you to look at insurance purchases holistically, strategically access capacity from all sources around the world, and choose between global programs and locally admitted coverage. Together, you can revisit your global structures at least on an annual basis and help you broaden terms, remove exclusions, clarify ambiguous language, and lock in multiyear rate guarantees.
For more on the insurance and risk management implications of new tariffs introduced in 2025, read New tariffs, new risks: How businesses can respond (opens a new window). And for more on how you can manage insurance programs more strategically during a time of uncertainty, explore our June 2025 Lockton Market Update (opens a new window).
