Tariffs or Inflation? Michelle Schulz Explains What’s Really Driving Higher Prices
- Schulz Trade Law
- Aug 19
- 2 min read
Tariffs or Inflation? Michelle Schulz Explains What’s Really Driving Higher Prices
From school supplies to global supply chains, tariffs—not just inflation—are shaping the cost of goods.
August 20, 2025
Introduction
As U.S. consumers brace for higher prices, the question arises: how much is due to ordinary inflation, and how much is tariff-driven? On August 20, 2025, Michelle Schulz, founder of Schulz Trade Law PLLC, joined WBAP Radio in Dallas-Fort Worth to separate fact from speculation and explain what tariffs really mean for businesses and households.
Tariffs vs. Inflation – Understanding the True Costs
While inflation has been a persistent issue, Schulz emphasized that tariffs are now a major contributor to rising costs.
“Importers are now really struggling with the cost of their imports and how they’re going to pay…even if they’re manufacturing in the U.S., how they’re going to manufacture from foreign components, if at all.”
Everyday goods, from school supplies to consumer staples, are increasingly affected. Tariff costs are trickling down through supply chains, leaving importers with few options but to pass expenses on to consumers.
Exemptions, Loopholes, and Enforcement
Not all imports are treated equally, and Schulz explained that exceptions exist—but they are technical, paperwork-heavy, and closely monitored.
“There are some special provisions for U.S. goods returned for repair, and provisions under the U.S.-Mexico-Canada Free Trade Agreement. But you have to prove origin—and customs is really on the lookout for mislabeling.”
While the UK received limited exemptions, most countries face a baseline 15% tariff. Businesses seeking relief must navigate the complexities of the Harmonized Tariff Schedule, origin rules, and free trade agreements—areas where legal expertise becomes critical.
Shifting Supply Chains and Future Risks
Looking forward, Schulz noted that companies are already pivoting operations in response to uncertainty, especially with China’s reprieve set to expire in November.
“We are seeing a lot of companies jump and pivot to different countries, different programs, and even some of them going out of business.”
Some firms are considering Foreign Trade Zones or temporary import bonds to minimize exposure, while others are bypassing the U.S. market altogether. Without clear policy resolution, higher tariffs—potentially above 100% on China—could accelerate these shifts.
Tariffs are no longer an abstract policy—they’re a direct cost driver affecting businesses, consumers, and competitiveness.
While exemptions and trade agreements provide opportunities, navigating them requires expertise.
At Schulz Trade Law PLLC, we specialize in helping importers, manufacturers, and logistics providers identify compliance strategies, pursue tariff exemptions, and adapt to rapid regulatory change.
Contact us today to move from uncertainty to strategic advantage.
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