Rising Tariffs, Revenue Gains, and Compliance Risks
- Schulz Trade Law
- Jul 30
- 2 min read
Rising Tariffs, Revenue Gains, and Compliance Risks
Michelle Schulz Breaks Down the U.S.-Japan and EU Trade Deals
July 29, 2025
Trade Deals Bring Tariff Relief—But Not Without Pain
In her July 29 interview on SiriusXM Road Dog Trucking, Michelle Schulz, founder of Schulz Trade Law, explained how the newly finalized U.S.-Japan and U.S.-EU trade deals may lower headline tariffs—from a threatened 30% down to 15%—but still pack a financial and logistical punch for importers.
“Fifteen percent is still expensive, but it’s better than 30,” Schulz said. “Importers are on the hook for those duties, and they’re having to raise prices or renegotiate contracts to stay afloat.”
Customs Revenue Soars—While Businesses Scramble
Customs and Border Protection has aggressively ramped up collection efforts, bringing in not just tariffs, but additional fees such as merchandise processing and harbor maintenance. According to Schulz, the average tariff rate has jumped from 2.5% to 13.5%, with no clear relief in sight.
“Ports are benefitting. So is Customs. But manufacturers, distributors, and shippers are rethinking everything—from how much they import to whether they use Foreign Trade Zones or restructure contracts,” she said.
The uncertainty around which countries or industries may face higher tariffs next is forcing companies to strategize in real time. With threats looming against Brazil, Canada, and Mexico, Schulz calls it a “roller coaster” for global supply chains.
Compliance is Now Critical—and Risky
With more scrutiny from Customs, Schulz warns that mistakes—intentional or not—can be costly.
“Customs has been directed to pursue full penalties without mitigation. That means even a $10,000 duty underpayment could lead to a $30,000 fine,” she said. “And if there’s evidence of fraud or deception? That can go criminal.”
Companies must now keep five years of records, monitor their Customs Bonds, and avoid undervaluation or incorrect tariff classifications. Schulz notes that “focused assessments” (audits) are on the rise, and compliance programs are no longer optional—they’re essential.
“Customs is like the IRS. You don’t want to play games,” Schulz advised. “They’ve seen every scheme.”
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