Tariff Turbulence: Michelle Schulz Warns of Ripple Effects from Proposed EU Trade Barriers
- Schulz Trade Law
- 4 days ago
- 3 min read
Tariff Turbulence: Michelle Schulz Warns of Ripple Effects from Proposed EU Trade Barriers
July 19, 2025
Schulz and McKelvey outline risks to Texas businesses and U.S. investment amid looming 30% tariffs.
President Trump’s recent announcement to impose 30% tariffs on goods from the European Union and Mexico—set to begin August 1—has sparked major concern among trade and industry experts. With the EU and Mexico among America’s largest trade partners, the policy threatens to disrupt key economic relationships.
To break down the implications, Michelle Schulz, Managing Partner at Schulz Law Firm and incoming Board Chair for the European American Chamber of Commerce Texas, joined Erin McKelvey, President and CEO of the Chamber, for an interview with East Texas Now’s Leo Quevedo.
EU: A Unified Front in Trade
“The EU is no longer just a group of countries—we’re now dealing with a single economic unit,” Schulz explained.
“When you’re dealing in a single currency, it’s almost as if there are no borders between the countries.”
According to the U.S. Trade Representative, the EU is America’s largest trading partner, accounting for $976 billion in goods trade in 2024. This makes the stakes of new tariffs particularly high.
Texas at the Epicenter of Impact
McKelvey emphasized how closely tied the EU is to Texas’ economy, especially in manufacturing, energy, and foreign direct investment (FDI).
“Europe contributed almost $100 billion in new investment into the United States in 2024—64% of all new FDI, more than any other global region,” she said.
These investments include critical sectors like automotive manufacturing in Texas and along the East Coast. But the ripple effects of retaliatory tariffs could be devastating.
From Trade Policy to Layoffs
Tariffs meant to reduce trade deficits may have the opposite effect on local economies. McKelvey offered a sobering example:
“Some European firms are telling their U.S. vendors they’re cutting purchases. That means plant closures and layoffs—not just in Europe, but right here in Texas.”
She added, “The cost will be passed on to consumers. That’s going to be difficult for business.”
Broader Concerns: Energy, Standards, and Diplomacy
Schulz and McKelvey also discussed several high-stakes issues:
Industries with U.S. trade surpluses, like aerospace, that may now face European countermeasures
Texas’ leadership in clean energy, and the risk that shifting standards and retaliatory tariffs could stall progress
Long-term strain on diplomatic and economic ties between the U.S. and EU
“I think the fallout will be a lot more difficult than people really understand,” McKelvey said. “It’s across the board.”
Watch the Full Interview
In this in-depth conversation, Schulz and McKelvey outline what’s at stake for East Texas and beyond. Watch both parts of the full interview below for the complete analysis.
If your company is exposed to global trade, now is the time to review your strategy. Contact Schulz Trade Law today for personalized guidance.
Subscribe to receive updates.
Copyright 2025 KLTV.
All rights reserved.
About Us
We are a dedicated team of trade law professionals, committed to helping businesses navigate the complexities of international regulations and tariffs. With deep industry knowledge and a client-first approach, we provide clear, actionable insights to protect your interests and drive success in a dynamic global market.
Contact Us
Stay ahead of trade law changes!
Contact us today for guidance on tariffs and regulations to safeguard your business.
Comments