Brewing Trade War? Michelle Schulz Breaks Down the U.S.-EU Tariff Clash
- Schulz Trade Law
- Jul 14
- 3 min read
Brewing Trade War?
Michelle Schulz Breaks Down the U.S.-EU Tariff Clash
July 14, 2025
The U.S. and European Union may be headed for a full-blown trade war—and the world is watching.
On July 14, 2025, Michelle Schulz, founding and managing partner of Schulz Trade Law, joined SiriusXM’s POTUS channel to discuss the mounting tensions over President Trump’s threatened 30% tariff on EU imports. With nearly $2 trillion in annual trade hanging in the balance, Schulz warned that this standoff could have devastating consequences for global markets and American businesses alike.
“We’ve been kind of living the high life until now,” Schulz said. “We’ve been drinking French wines, doing business freely with Europe—but that’s about to change.”
Escalating Pressure and Global Ripple Effects
The proposed tariff hike marks a sharp turn in U.S.-EU relations. According to the EU Trade Commissioner, any tariff above 30% would be a deal-breaker, potentially “wiping out” bilateral trade. Schulz explained that the pressure is mounting not just on European leaders but also on President Trump to strike alternative deals quickly.
“When we cannot import from Europe, if it becomes too expensive, then the pressure is on the President to secure deals with other countries,” she noted.
That’s already affecting U.S. businesses. Schulz shared that one of her clients recently shifted operations to Europe to avoid impending tariffs—a trend she says could become widespread.
“Jobs and services are leaving the U.S. instead of coming back,” she cautioned. “This undercuts the idea of reshoring American industry.”
What’s on the Line: Medical Devices, Wine, and Everyday Costs
While the average American may not be closely tracking trade policy, the effects will hit close to home. From critical medical supplies to gourmet indulgences like French wine and Italian cheese, prices are set to surge.
“We’re already seeing increased costs due to existing 50% steel and aluminum tariffs,” Schulz explained. “Stacking an additional 30% on top will make some goods nearly unaffordable.”
For healthcare providers, that could mean tighter budgets. For consumers, the cost of luxury—and even necessity—could rise sharply.
“You're looking at paying a lot more,” she said. “It will trickle down to the customers.”
Informal Negotiations, Legal Battles, and the Path Forward
Adding to the uncertainty is the unorthodox way this dispute is being handled. Unlike formal trade negotiations that take months or years, Schulz pointed out that this process has devolved into little more than letter exchanges.
“These are just letters,” she said bluntly. “This isn’t the usual process for the U.S. in any kind of international trade deal.”
Meanwhile, legal challenges are unfolding in the background. Cases in the Federal Circuit are questioning the very authority of the President to unilaterally impose such sweeping tariffs. The outcome of these cases could redefine the boundaries of executive power in trade policy.
What Businesses Should Do Now
Schulz offered a clear message to businesses: don’t wait. With the August 1 deadline looming and retaliatory EU tariffs almost certain, preparation is essential.
“Our clients are pivoting—fast,” she said. “They’re exploring every legal and logistical mechanism available to minimize losses. But it’s not looking good.”
At Schulz Trade Law, we help companies navigate international trade turbulence with confidence. If your business is grappling with tariff risks or shifting trade rules, now is the time to act.
Contact us for tailored strategies in compliance, mitigation, and global supply chain planning.
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