Better safe than sorry: Lawyers advise cos on US regulatory changes under Trump

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Subscribe to enjoy similar stories. Law firms are advising Indian companies operating in the US or engaging in deals with American firms to expect closer scrutiny under the Trump administration, suggesting additional clauses in legal contracts to protect their interests. The election of Donald Trump has sparked concerns in India and across the world that the President-elect's America First policies will raise the heat for other countries and their companies.

Tighter regulation of Indian companies' investments and hiring in the US, and stricter enforcement in cases of malpractices are likely, law firms said, as they suggest clients to include 'Force Majeure' and 'Material Adverse Change (MAC)' provisions to cover shifts in trade policies, tariffs, and sanctions. Force Majeure is a legal concept the absolves the parties from their obligations in case of events beyond their control. “Trump’s increased focus on an ‘America First’ policy means inbound investments from India—and potentially from global investors—will become more complex.

Heightened regulatory scrutiny will likely affect sensitive sectors like technology, critical minerals, and issues related to local job creation," said Rishabh Shroff, partner (co-head, private client and head, international business development), Cyril Amarchand Mangaldas. Trump was elected the 47th US President, defeating incumbent vice president Kamala Harris after the 5 November polls. This marks his second term after serving from 2017 to January 2021, a period marked by tariff wars, trade restrictions, and unpredictable foreign policy.

Trump will officially take office on 20 January for a four-year term, alongside his vice president J.D. Vance. Also read | Mint Primer Two to tango: The