Tariffs, National Security, and Rising Costs
- Schulz Trade Law
- 3 days ago
- 2 min read
Tariffs, National Security, and Rising Costs
Michelle Schulz Explains What’s Ahead
Trade attorney Michelle Schulz breaks down the new wave of U.S. tariffs on drugs, furniture, and trucks—explaining the legal backdrop, economic timing, and global implications.
Why Tariffs Now?
The Supreme Court and a Backup Plan
As the U.S. prepares to impose new tariffs on October 1—ranging from 50% on pharmaceuticals to 30% on furniture—Michelle Schulz explained that timing is no coincidence. A critical Supreme Court case in early November will determine whether “reciprocal tariffs” are legal.
Schulz noted that this new package of tariffs seems to act as a safeguard.
“In my view, this is kind of a backup plan, because these would have to be implemented under a different law… under Section 232, where investigations are conducted into national security.”
National Security Justifications and Consumer Impact
Traditionally, Section 232 investigations have applied to defense-sensitive materials like steel and aluminum. Extending that logic to kitchen cabinets and upholstered furniture struck Schulz as unusual:
“Couches, furniture… it’s a little interesting. I know the President has mentioned that we’re flooded with foreign-made furniture, but I don’t know how that connects with national security.”
At the same time, she emphasized the very real impact on U.S. consumers. With the de minimis rule—allowing imports under $800 without duties—recently eliminated, prices are already climbing.
“It’s kind of a turning point, because products are going to be noticeably more expensive now, and I think consumers will notice.”
Global Responses and the Road Ahead
International partners are watching closely. While the EU and Japan claim to have secured limits on U.S. drug tariffs, Schulz warned that these are not yet solid agreements.
“There has been an agreement reached with the EU, but it’s not fleshed out yet. We have these letters and broad terms, but not full-on free trade agreements.”
Pharmaceutical giants like Roche and Novartis are pledging major investments in the U.S., but smaller companies may struggle. As Schulz pointed out,
“Tariffs can stack on one another… I wonder what will happen with companies that are smaller, maybe in other countries that can’t afford to build plants in the U.S.”
With tariffs shifting rapidly and enforcement intensifying, businesses need to stay ahead of both legal and economic risks.
If your company is navigating these changes, contact Schulz Trade Law today to assess your exposure, review compliance strategies, and prepare for the Supreme Court’s decision.
Trade on, but trade informed!
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