Clifford Chance

Navigating global trade in a time of change

Global trade and investment are undergoing dramatic change. Geopolitical and regulatory developments are fast-moving and often unpredictable. Over the past few months, the Trump administration has made the most sweeping US tariff changes in decades. At the same time sanctions, export controls, investment screening and regulatory developments are increasingly influenced by national security, trade and industrial policy objectives – with important implications for all businesses engaged in cross-border activities. These developments collectively have a significant impact on business resilience and global supply chains.

While uncertainty and change are common themes, geopolitical and regulatory developments are playing out in different ways across regions, sectors and policy areas. "To remain competitive in this new environment, businesses need a holistic and dynamic strategy for responding to emerging developments that is informed by integrated cross-jurisdictional expertise encompassing tariffs, sanctions, export controls, foreign investment regimes and broader regulatory considerations" says Jessica Gladstone, a Partner at Clifford Chance based in London. This new environment demands that businesses:

1. Embed real-time monitoring of trade and regulatory developments into compliance systems and cross-functional co-ordination across management and legal, trade, compliance, strategy and procurement teams.

2. Conduct trade and regulatory horizon-scanning and scenario-planning, to inform business and advocacy strategies.

3. Integrate flexibility into supply chain and investment strategies, to enable rapid responses to emerging developments.

4. Review, and where necessary adapt, contractual terms to pre-empt and react to sudden changes in the geopolitical and regulatory landscape.

5. Focus on enforcement risk arising from heightened scrutiny of compliance and litigation risk, whether with counterparties, investors or shareholders.