What Does “Made in America” Really Mean?
- Schulz Trade Law
- Jun 19
- 3 min read
What Does “Made in America” Really Mean?
Michelle Schulz Unpacks Tariffs, Labels, and Legal Gray Areas on The James Show
June 19, 2025
Michelle Schulz, founder of Schulz Trade Law, returned to The James Show to offer sharp insight into America’s evolving trade policies. This time, the conversation zeroed in on a deceptively simple question:
What does it really mean to be “Made in America”?
With tariff confusion mounting and "Made in the USA" labels under greater scrutiny, Schulz broke down the legal complexities behind origin claims—and why getting it wrong can mean big trouble for businesses.
“Made in America”? Not So Fast.
Host James Parker opened the discussion by highlighting a troubling example: a television labeled “Made in America,” even though almost every component came from overseas. The only domestic contribution? A single motherboard plugged in and a few screws.
Schulz didn’t mince words:
“To be made in America, it needs to be all, or substantially all, made in America… You really have to ask: when did it change from being one thing to another?”
She explained the key concept of “substantial transformation,” which is defined by U.S. Customs regulations and tariff codes. If a product’s essential character doesn’t change—just a minor assembly—it likely doesn’t meet the standard for a valid U.S. origin claim.
Tariffs Still in Play
Schulz also provided an update on the current tariff environment. While some China tariffs have eased slightly, many high-impact tariffs remain firmly in place—especially on steel and aluminum.
“They're just not the focus of the news right now,” Schulz noted, “but companies are still paying attention.”
Even though a court ruled that certain tariffs were improperly issued, a legal stay has paused that decision, meaning many of the contested tariffs are still active while appeals proceed.
No Such Thing as a 100% American Car?
From Teslas to Toyotas, Schulz and Parker discussed the murky reality behind car manufacturing labels. Even the most “American-made” vehicles are built from a global mix of components—including rare earth minerals and metals that the U.S. doesn’t currently produce.
“Cars have materials like steel and aluminum that aren’t coming from the U.S.,” Schulz said. “We’re going to see 50% tariffs on those until we rebuild our domestic supply chains.”
Clothing, Pencils, and Compliance
It’s not just electronics and vehicles. Schulz pointed to examples like clothing labels that claim “Made in America” even when the fabric comes from overseas:
“You’ll see things like ‘Made in America of Vietnamese yarn.’ That’s where companies really need to be careful.”
She also echoed a famous Milton Friedman anecdote about the complexity of making a simple pencil—with materials sourced from all over the world—driving home how interconnected global trade really is.
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