According to the Thomson Reuters Institute's latest Law Firm Financial Index, the ongoing global trade war has significantly increased client demand for legal services, particularly in March 2025. Law firms raised their rates by 7.3% during the first quarter, the highest escalation since 2005. However, the report warns that a deteriorating U.S. economy could negatively impact long-term transactional work, which is crucial for large firms. Historically, similar conditions in 2007 led to a steep decline in both demand and pricing power for law firms.
Law firms experienced 'flooded' client demand in March 2025 due to the global trade war, although future sustainability remains uncertain amid a weakening U.S. economy.
Firms raised rates by 7.3% in Q1 2025, marking the most aggressive increases since 2005, but concerns linger over long-term transactional work vulnerabilities.
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