The Staggering Impact of 250% Tariffs: Insights from Michelle Schulz on KSL Radio
- Schulz Trade Law
- Aug 8
- 3 min read
The Staggering Impact of 250% Tariffs:
Insights from Michelle Schulz on KSL Radio
August 7, 2025
Inside Sources
KSL Radio
Salt Lake City, Utah
Navigating the Tariff Storm: Michelle Schulz Unpacks the Challenges for Businesses and Consumers
Host: Holly Richardson
The Shock of 250% Tariffs
When asked for her first reaction to the news of proposed 250% tariffs, Michelle Schulz, Founder and Managing Partner of Schulz Trade Law PLLC, did not mince words:
“I’m shocked. Honestly, I’m shocked. In the past, when I’ve been trying to save money for clients, I would think 10% is too high. 7% is too high. 250% is a game changer, and it could put some companies out of business.”
Speaking with KSL Radio's "Inside Sources" in Salt Lake City on August 7, 2025, Schulz explained that while previous tariff hikes were already difficult for importers to absorb, these unprecedented rates could reshape entire industries—especially for companies heavily reliant on foreign-made pharmaceuticals and other essential imports.
Why Manufacturing Moved Overseas and the Current Challenges
Addressing why pharmaceutical manufacturing shifted abroad in the first place, Schulz cited both cost and expertise:
“A lot of it is because we can get that work done less expensively elsewhere. Also, in many cases, the expertise is elsewhere. Germany’s scientists and research capabilities are pretty advanced. Switzerland is very good at producing drugs.”
With 250% tariffs now looming over imports from countries like Germany and Switzerland—where the U.S. already imposes a 39% reciprocal tariff—companies face difficult decisions. Some major players, such as Eli Lilly and Johnson & Johnson, have committed to U.S. investments. But for many others, Schulz said, the conversation is less about reshoring and more about leaving the U.S. market entirely:
“What I’ve heard is that clients are planning on moving their operations to other countries and maybe just foregoing sales in the U.S.”
For smaller firms without the capital to build domestic manufacturing infrastructure, the shift could mean abandoning the market, potentially reducing the availability of high-quality medications, including generics and over-the-counter drugs.
Consumer Impact and the Long-Term Outlook
The ripple effect of 250% tariffs will almost certainly reach consumers. Initially, some companies absorbed the extra costs to avoid price hikes, but Schulz noted that approach is no longer sustainable:
“250% is not something they can keep going. There’s a risk they will have to pass on very high prices to the consumer if they want to stay in business.”
Even generics and everyday medicines like Tylenol could see price spikes:
“Generics will be impacted, also over-the-counter drugs… It’s anything—generic, over-the-counter, prescription—they’re all going to have to go up.”
And while some might hope for relief if tariffs are rolled back under a future administration, Schulz cautioned that it’s not that simple:
“Our clients generally are realizing this is here for a while, because to change that back is going to require a lot of work.”
The bottom line? The 250% tariffs represent a seismic shift in U.S. trade policy—one that will challenge businesses, reshape supply chains, and almost certainly hit consumers’ wallets.
KSL Radio, Salt Lake City, Utah
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