Consumers Are Feeling the Squeeze: Tariffs, Fashion Prices, and the Supreme Court’s Pending Ruling
- Schulz Trade Law
- 2 days ago
- 3 min read
Consumers Are Feeling the Squeeze
Michelle Schulz on Tariffs, Fashion Prices, and the Supreme Court’s Pending Ruling
Trade attorney Michelle Schulz explains why apparel, electronics, and everyday imports are getting more expensive — and how a Supreme Court decision could trigger billions in refunds.
"Companies Are No Longer Able to Absorb the Difference”
In her latest appearance on SiriusXM POTUS Politics, trade attorney Michelle Schulz said consumers are now directly experiencing the impact of the current tariff regime. Businesses that once buffered the costs are out of room.
“It has been significant,” she told host Tim Farley. “Companies are no longer able to absorb the difference, and the tariffs are really increasing prices. Consumers are seeing this, and they’re complaining about it.”
Schulz highlighted one especially painful shift: the loss of the old $800 de minimis threshold, which once allowed low-value items to enter the U.S. duty-free.
“We used to be able to import items under $800 and we can’t do that anymore,” she said, noting that the effect has hit fast-fashion, shoes, and electronics particularly hard.
A Fashion Industry Bracing for 2026 — and Small Businesses Already Breaking
Farley pointed out that the global fashion sector expects 2026 to be a very difficult year. Schulz agreed — and stressed that small U.S. importers are already in crisis.
“For the most part… companies are hoping desperately that something will change,” she said. “Small businesses in apparel, footwear, other kinds of fashion are not going to be able to stay in business. We are trying to help them stay in business, but there is only so much you can do when the tariffs are a huge percentage of the import price.”
Even large companies with international footprints can only hold out so long. The industry is effectively waiting on the Supreme Court — and running out of time.
The Supreme Court Decision Could Trigger Refunds — But No Quick Fix
As the Supreme Court prepares to rule on whether President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA), Schulz said the stakes are enormous.
If the justices find the tariffs unlawful, “there will have to be a refund option,” she said. “
Importers should be following what they’re paying and tracking their expenses… Customs should be providing refunds. It’s not quick — they’re not quick to return money — but it can be done.”
She also noted that the recent federal shutdown caused delays in seizures, inspections, and protests — all of which hit importers with storage fees and carrying costs.
“The time ends up taking money,” she said.
But even a ruling against the administration won’t solve supply chain challenges overnight. As Schulz reminded listeners:
“Overall, there’s no easy way to manage this as a company.”
With consumer prices rising and the Supreme Court’s decision imminent, importers must prepare for both outcomes: relief in the form of refunds or continued tariff pressure.
If your business imports apparel, electronics, or other consumer goods, contact Schulz Trade Law today to audit your tariff exposure, review refund eligibility, and build a compliance plan that protects your bottom line.
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