The dispute landscape involves brand manufacturers, Tier 1 and Tier 2 suppliers, dropshippers, and logistics firms. New tariff policy has sharpened the pressure: a 10% ad valorem tariff effective February 24, 2026, has raised effective rates on Chinese goods to 22-34%, hitting automotive and beauty/fashion hardest due to their reliance on critical minerals, semiconductors, and high-tariff cosmetics and apparel codes. Seventy-two percent of supply chain professionals cite U.S. tariff changes as their top concern, up from 41% the prior year.
Manufacturers are responding by renegotiating contracts (57% of firms) or nearshoring operations (51%), but disputes continue to mount. Attorneys should expect more litigation as courts reject loose force majeure and performance defenses. The practical takeaway: build flexible contracts with clear performance triggers, transparency provisions, and contingency clauses. Vague commitments and outdated boilerplate now carry real litigation risk in a supply chain that remains structurally volatile despite the post-2025 recovery.