Europe, Retaliation, and the Supreme Court: Why Tariff Uncertainty Isn’t Going Away
- Schulz Trade Law
- Jan 20
- 3 min read
Europe, Retaliation, and the Supreme Court
Why Tariff Uncertainty Isn’t Going Away
Michelle Schulz explains why a Supreme Court ruling won’t end tariffs—and what escalating trade tensions mean for consumers.
In an interview on WBAP Radio in Dallas–Fort Worth, Michelle Schulz, founder and managing partner of Schulz Trade Law, discussed the growing complexity of U.S. tariff policy as the Supreme Court weighs the president’s authority to impose global tariffs. With potential new tariffs on European goods and retaliatory measures already being discussed abroad, Michelle outlined why consumers and businesses should prepare for continued volatility—regardless of how the Court rules.
What the Supreme Court Is Deciding—and What It Isn’t
At the center of the case before the Supreme Court of the United States are the so-called Liberation Day tariffs—baseline tariffs applied broadly under the International Emergency Economic Powers Act (IEEPA).
“The Supreme Court has only been asked to decide on… these tariffs that are under the Emergency Economic Powers Act.”
Michelle emphasized that the Court is not ruling on every tariff currently in place. Even if the IEEPA tariffs are struck down, many others will remain.
“There are other tariffs, though, that may still apply… like the steel and aluminum tariffs or the ones specific to copper and furniture.”
Why a Tariff Is Not Just ‘a Tariff’
While tariffs may seem interchangeable, Michelle explained that they are imposed under very different legal authorities—each with its own rules and vulnerabilities.
“That’s what you would think, right? A tariff’s a tariff—but they’re using all these different mechanisms.”
Some tariffs are justified under national security statutes, others under unfair trade practice laws, and still others—like the IEEPA tariffs—under emergency powers. This layered approach means that even a loss at the Supreme Court would not eliminate tariffs as a policy tool.
“Even if the IEEPA tariffs are shot down, we still will see the administration using backup plans.”
Europe, Retaliation, and the Consumer Impact
Michelle also addressed the administration’s recent suggestion of imposing new tariffs on European goods—potentially around 10%—and the likely response from the EU.
“Now the President is talking about 10% on European products, which would impact everything from cars to luxury goods.”
She warned that Europe is already signaling strong retaliation, escalating the risk of a broader trade conflict.
“The Europeans are going to fire back with their own… really strong tariff measures.”
For consumers, this means higher prices—especially for imported vehicles, specialty goods, and products sold by small and mid-sized businesses that lack the margin to absorb rising costs.
“Small to medium-sized businesses can’t sustain these high taxes on everything they bring into the country.”
What This Means Going Forward
Michelle made clear that even a favorable Supreme Court ruling would not bring immediate relief. Refunds could take time, new tariffs may follow under different statutes, and global retaliation could further drive up prices.
Tariff policy, she noted, has become faster, more fragmented, and more unpredictable than in the past.
Trade policy is no longer driven by economics alone. As tariffs become entwined with geopolitics, executive authority, and unresolved legal challenges, businesses must stay vigilant.
Schulz Trade Law helps importers and global companies assess risk, navigate sudden policy shifts, and prepare for rapid changes in the trade landscape.
Trade on, but trade informed!
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