Tariffs are no longer a distant headline. As import taxes on furnishings and materials rise, and vendors scramble to recalibrate pricing, design professionals must revisit an often-overlooked asset: their client contracts. Done right, contract tweaks can turn unpredictable tariff hikes from threats to the bottom line into manageable line items. Interior Design 411 breaks down how to rework your agreements for the new economic terrain.
Reinforce Your Force Majeure
Many contracts already include a force majeure clause, protecting you from events outside your control. But don’t assume it covers everything. Most force majeure clauses reference government actions, which technically includes tariff changes, but it’s smart to explicitly include tariffs and related delays in your language.
What matters more than the fine print, though, is client communication. Lawyers who work with design firms stress the importance of proactively walking clients through these clauses. A buried clause won’t save you from conflict if clients feel blindsided. Clarify before any invoices go out. That transparency builds trust and positions you as a professional who anticipates, rather than reacts.
Pinpoint Tariff Responsibility
If your current contracts don’t assign responsibility for tariffs, update them now. The most defensible approach is straightforward: tariffs and duties tied to approved purchases fall on the client. Treat them like taxes or shipping fees, predictable, trackable, and reimbursable.
For added clarity, share documentation. Ask freight forwarders or customs brokers for specifics on timelines and costs. Then, provide this to your client with an updated quote. This preempts sticker shock and shows that you’ve done your homework. In a volatile market, concrete data carries more weight than vague assurances.
Make Room for Fluctuating Prices
The harder scenario is when tariffs affect components, not finished goods, meaning you’re hit indirectly through domestic price hikes. Here, specificity is your ally.
Design business platform Studio Designer recommends adding a clause stating that if prices rise more than 10% post-approval, clients will be notified and can choose to proceed or reselect. It’s a balanced approach that covers your exposure without boxing clients in. A few firms now even issue proposals with built-in disclaimers, stating clearly that selections may need to change if prices jump. Consider adopting this for all new project proposals.
Shrink Your Quote Expiration Windows
Designers are seeing quote validity windows shrink from weeks to days. A 30-day guarantee is no longer realistic when vendors warn that prices could rise in 48 hours. If your contract still includes outdated timelines, revise it. Many designers are now giving clients 10 days, or even fewer, to sign off on proposals.
Speed becomes part of your design process. Explain to clients that decision-making delays carry real costs. The longer they wait, the greater the risk of paying more or having to start over.
Ditch Return Hopes and Charge for Procurement
Tariff-era uncertainty demands strict policies around orders. Language suggesting potential returns or cancellations should be removed from contracts. Returns should be at your discretion, never promised in writing. When clients hesitate mid-project, you need a clause that keeps orders final and non-refundable.
Also re-evaluate your pricing model. Flat-fee contracts may seem client-friendly, but they shift all risk to you. If procurement becomes a logistical nightmare due to vendor closures or product re-sourcing, and you’re not charging hourly, you eat those costs. Protect your margins by billing separately and transparently for procurement.
Trade-Savvy Contracts Are Your Competitive Advantage
Designers who survived the pandemic already know how supply chains can implode overnight. Tariffs introduce a slower, less dramatic (but equally real) form of disruption. The designers and firms that thrive will be the ones whose contracts are nimble, protective, and precise.
Train your team, communicate with your clients, and treat your contract as a living tool. That mindset may be your best defense in a market where tomorrow’s pricing is anyone’s guess.
SOURCES: Business of Home
This article is intended for informational purposes only and does not constitute legal advice. Readers should consult with a qualified attorney familiar with interior design business practices and contract law before making changes to their client agreements or relying on any legal interpretations mentioned here. Contract language and enforceability may vary based on jurisdiction, project scope, and specific client arrangements. The views expressed are those of the author and contributing experts and do not reflect official legal guidance.
