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Trade War Fuels Legal Boom, but Firms Face Uncertain Months Ahead

Law firms saw an early 2025 rebound as Trump’s trade war fueled litigation and deal activity, according to the Thomson Reuters Institute. Tariff-driven client demand lifted revenues after a weak winter, though the report warned the boost may be temporary. Rising costs and record billing rate hikes suggest firms are bracing for a slowdown if trade tensions persist.






Law firms started 2025 on uneven footing, yet President Trump’s global trade war turned out to be a surprising source of strength. According to the Thomson Reuters Institute, the surge in tariffs during March drove a wave of litigation and deal work that lifted revenues after a weak winter. The institute’s index, which tracks nearly two hundred large and midsized firms, showed that demand and lawyer productivity fell early in the year, but a late burst of client activity helped stabilize performance as companies rushed to navigate the new trade rules.


Still, the report cautioned that the momentum may fade. Rising tariffs often create a short-lived spike in legal work before slowing broader economic activity. Firms are already feeling cost pressures—lawyer compensation rose more than seven percent, while overhead expenses climbed above six percent. Billing rates increased at the fastest pace in nearly two decades, a sign that firms are trying to protect profits before the market cools. The institute concluded that 2025 could still be a strong year for law firms, but leaders should prepare for a tougher climate if trade tensions deepen.






 
 
 

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