Tariffs and the Consumer Squeeze: Michelle Schulz on KCBS Radio Discusses What’s Coming
- Schulz Trade Law
- 4 days ago
- 2 min read
Tariffs and the Consumer Squeeze
Michelle Schulz on KCBS Radio Discusses What’s Coming
July 19, 2025
As the Trump administration moves forward with sweeping new tariffs—some climbing as high as 50% on Brazil, 40% on other countries, and 30% on the EU—the ripple effects are being felt across U.S. businesses and households.
On KCBS Radio, Michelle Schulz, Founder of Schulz Trade Law, joined Liz Saint John to break down what these tariffs mean for industries, prices, and consumers—and how quickly we’ll all start to feel the squeeze.
Importers Hit First—and Hardest
“The U.S. importer pays the tariff. When you look at the August 1 deadline, we’re about to see a snapback to reciprocal tariffs, and U.S. businesses that rely on foreign components can’t sustain domestic manufacturing under that cost pressure.”
Industries from aerospace to oil and gas and clothing are already recalculating production costs. Thin profit margins are forcing companies to raise prices or reduce their U.S. manufacturing footprint.
What This Means for Consumers
Liz Saint John raised a critical point: How can consumers make sense of it all?
Schulz explained:
“You’ll start seeing an uptick in the next three to four months. Even with duty savings programs, most of the increased costs are passed to the consumer. There just isn’t enough margin to absorb a 30–50% tariff.”
Expect price hikes in:
Groceries and gourmet foods (especially from Mexico and the EU)
Technology and electronics
Aircraft parts and travel-related costs
Few Industries Are Immune
Even “Made in the USA” labels don’t always shield from tariffs. Schulz clarified:
“To qualify as ‘Made in the U.S.,’ a product must be all—or substantially all—made domestically. Most end products in stores contain foreign materials or components, so they’re still tariff-exposed.”
Some manufacturers are attempting to restructure product sourcing or claim partial exemptions, but the burden of proof is high and the compliance process complex.
Business Realities: From Absorbing to Passing Costs
Initially, some companies tried to shield customers:
“We’ve seen businesses agree to absorb part of the tariff due to prior contract terms. But now that there's been sufficient warning, most aren’t doing that anymore,” Schulz said.“They’re pricing the tariffs in—passing it to both their customers and suppliers.”
What’s Next?
As global tariff policies continue to evolve, businesses are scrambling to adapt. Schulz emphasized that industries will need legal strategies, trade compliance guidance, and contract renegotiation to stay competitive in this volatile landscape.
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