Tariffs, Inflation, and Rare Earth Leverage
- Schulz Trade Law
- 14 minutes ago
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Tariffs, Inflation, and Rare Earth Leverage
Michelle Schulz on What’s Next for Consumers and the Global Supply Chain
Trade attorney Michelle Schulz joins WTMJ Radio to explain why furniture, construction materials, and electronics are about to get more expensive—and how China’s control of rare earth minerals gives it a powerful edge.
Tariffs Are Fueling Price Increases Across Everyday Goods
In her WTMJ interview, international trade attorney Michelle Schulz confirmed that while consumers have already felt the effects of higher prices, the worst may still be ahead.
“Building and construction will suffer a hit because steel, aluminum, and basic materials are going to be impacted,” she said. “Furniture and cabinetry have gone up—as high as 50%. Home buyers are going to be faced with a choice: source domestically or pay more for foreign furniture.”
Schulz pointed to examples already visible in retail.
“We’ve seen price increases at IKEA,” she noted, as the company’s popular Upland sofa rose from $850 to $900 and a three-piece oak bedroom set jumped from $960 to $1,050.
Why Prices May Not Come Back Down
Even if tariff pressures ease, Schulz warned that the price hikes are likely to stick.
“It’s going to be difficult to undo the price increases once they really go into effect,” she said. “In the beginning, companies were more apt to absorb the cost, but they’re running out of that stocked-up inventory.”
Economists call this “sticky pricing”—once companies reorganize their supply chains or reprice goods, those costs tend to remain. As Schulz emphasized, the early stages of the trade war allowed some flexibility, but rising costs across industries mean that cushion is now gone.
China’s Leverage and the Global Supply Chain
Looking ahead, Schulz warned that China’s response to U.S. tariffs could have even more far-reaching effects.
China really controls the vast majority of the world’s rare earth minerals,” she said. “In retaliation to our tariffs, they’ve decided to place export controls on rare earth minerals going to foreign parties. We need those to make things like laptops, computers—virtually anything.”
With the President preparing to attend the APEC summit and meet with Chinese officials, Schulz noted that this moment could be pivotal but not decisive:
“Maybe the administration is starting to realize China’s leverage… but the trade war likely won’t end—it’s only the beginning of another phase.
From furniture and construction to tech manufacturing, tariffs and supply disruptions are reshaping industries in real time.
If your company imports goods or relies on international materials, contact Schulz Trade Law today for guidance on tariff exposure, compliance, and global sourcing strategies in this shifting trade environment.
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