Events
Jenny Speck to Speak at Lockton U.S. Energy Risk Summit
Partner Jenny Speck will speak at Lockton’s U.S. Energy Risk Summit on November 12, 2026, in Houston, Texas. The summit …
November 12, 2026
November 12, 2026 • 1-minute read
Insight
Articles
September 3, 2026 • 2-minute read
U.S. tariff policy has rarely been more unsettled. Courts have repeatedly struck down tariff actions, and the administration has just as quickly replaced them under different legal authorities, while other tariffs have remained untouched throughout. Meanwhile, the Department of Justice has designated tariff evasion and customs fraud a top enforcement priority, winning major tariff-related settlements against companies under the False Claims Act.
This challenging environment creates significant risk for companies with substantial tariff exposure. In this article, we outline five strategies for managing tariff-related risk and compliance obligations.
Many long-term supply agreements were negotiated before today’s volatile tariff environment emerged, and so do not contemplate a landscape in which duties can skyrocket, plummet, or even disappear with little or no warning. Companies should scrutinize the language in these agreements to understand their tariff obligations and determine how liability should be allocated. This means re-examining force majeure clauses, cost-sharing and pass-through mechanisms, and any provisions for what happens if a relevant tariff under the contract is rescinded or replaced. Companies negotiating new agreements should consider building more explicit tariff-allocation language in from the outset.
Before 2025, companies devoted less attention to tariff classification or country-of-origin determinations. Both now warrant serious scrutiny. Companies should conduct internal reviews of how their products are classified under the Harmonized Tariff Schedule and where they are legally deemed to originate for customs purposes — an analysis that has grown more consequential as tariff rates continue to shift. These reviews can help companies identify areas of potential underpayment and calculate any outstanding liability, spot opportunities for refunds on overpaid duties, and correct classification practices going forward.
If an internal review reveals a potential underpayment, companies should weigh the benefits of a prior disclosure to U.S. Customs and Border Protection — which can substantially reduce potential penalties — against the costs and risks that such a disclosure entails. Regulators have grown more aggressive in pursuing customs violations in recent years, raising the stakes for companies that sit on a known underpayment rather than disclosing it.
There is more than one way to bring a product into the United States. Components sourced from different countries and assembled domestically, or substantially transformed through additional processing, may be entitled to different tariff treatment than a finished good imported as-is. Companies should look closely at their products and supply chains to identify legitimate, compliant tariff engineering options, along with tools like foreign trade zones and bonded warehouses, that can potentially reduce or defer tariff duty payments.
The pace of tariff policy change shows no sign of slowing, and litigation over refund eligibility for the rescinded IEEPA tariffs remains unresolved. Companies should track developments closely and build that monitoring into ongoing compliance planning. When new tariff actions are proposed and a public comment period is available, companies should consider advocating directly with the government, as these pre-effective-date windows are generally when companies have the greatest ability to influence a policy outcome.
This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.
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Jenny Speck to Speak at Lockton U.S. Energy Risk Summit
Partner Jenny Speck will speak at Lockton’s U.S. Energy Risk Summit on November 12, 2026, in Houston, Texas. The summit …
November 12, 2026
November 12, 2026 • 1-minute read
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