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- Holiday Spending Hits Records — But Consumers Are Taking Home Less
Holiday Spending Hits Records — But Consumers Are Taking Home Less Michelle Schulz Explains Why Tariffs Are Driving Up Prices Trade attorney Michelle Schulz breaks down how tariffs on more than 70 countries, shifting rules, and the end of the de minimis threshold are pushing up holiday spending prices on toys, clothing, decorations—and even small online orders. December 3, 2025 Inside Sources, KSL Radio Salt Lake City, Utah Host: Holly Richardson Record Spending, Smaller Shopping Carts On KSL Radio , hosts opened with a surprising contrast: despite record-breaking Black Friday and Cyber Monday numbers, shoppers are bringing home fewer goods . Prices rose faster than spending — and international trade attorney Michelle Schulz explained why. “We’ve got tariffs on over 65 countries — I’m thinking it’s over 70 now,” Schulz said. “The tariffs impact a wide variety of industries… and clients who are importers are really struggling to deal with them and either cover the cost or pass it along to their buyers.” Even though consumers feel like everything is “on sale,” the data shows the opposite: shopping carts are smaller and price tags are higher — a direct consequence of multiple layers of tariffs now baked into supply chain costs. Toys, Textiles, and Christmas Decorations Are All Going Up When asked which holiday goods are being hit hardest, Schulz was clear: “Toys are up there — also clothing and textiles… fashion items have always been subject to slightly high tariffs, but it’s more now,” she explained. “People are buying less. They’re paying more, but they’re buying less.” Even Christmas decorations — almost all imported from China — are more expensive this year. Adding to the complexity, companies must track which tariffs apply to which components . Is it the metal? The fabric? The finished good? Schulz said the rapid changes are causing unavoidable errors: “We’re seeing a lot of mistakes, and I can’t blame them — it’s changing all the time, and it’s difficult to understand how they stack.” Free Trade Agreements vs. Penalties — and the End of the $800 Rule The conversation turned to the USMCA agreement. Schulz noted that for some businesses, it has been the only thing saving them: “I had a client tell me yesterday that the U.S.–Mexico–Canada Free Trade Agreement saved their year,” she said. “If they hadn’t qualified, they wouldn’t have been able to handle the tariffs.” But not everything qualifies — and attempts to “route” goods through Mexico or Canada without meeting origin rules can backfire. “That turns into a major problem with customs… and can result in penalties. Transshipments are currently subject to 40% penalties.” Perhaps the most universal change: The $800 de minimis exemption is effectively gone. “There’s no $800 threshold anymore,” Schulz warned. “Even low-dollar items are subject to tariffs now… You may see the tariff in your cart, or you may be surprised afterwards.” Whether you’re importing bulk goods or ordering a $20 toy from overseas, untaxed imports are no longer the norm — and it’s catching consumers off guard. Tariffs now touch nearly every category of holiday shopping—from toys to textiles to small online orders—and the rules continue shifting. If your business imports goods of any kind, contact Schulz Trade Law today to review classification strategies, avoid penalties, and manage rising tariff exposure during the busiest retail season of the year. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates. 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 Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.
- Consumers Are Feeling the Squeeze: Tariffs, Fashion Prices, and the Supreme Court’s Pending Ruling
Consumers Are Feeling the Squeeze Michelle Schulz on Tariffs, Fashion Prices, and the Supreme Court’s Pending Ruling Trade attorney Michelle Schulz explains why apparel, electronics, and everyday imports are getting more expensive — and how a Supreme Court decision could trigger billions in refunds. December 2, 2025 POTUS Politics SiriusXM, Channel 124 Host: Tim Farley "Companies Are No Longer Able to Absorb the Difference” In her latest appearance on SiriusXM POTUS Politics , trade attorney Michelle Schulz said consumers are now directly experiencing the impact of the current tariff regime. Businesses that once buffered the costs are out of room. “It has been significant,” she told host Tim Farley. “Companies are no longer able to absorb the difference, and the tariffs are really increasing prices. Consumers are seeing this, and they’re complaining about it.” Schulz highlighted one especially painful shift: the loss of the old $800 de minimis threshold , which once allowed low-value items to enter the U.S. duty-free. “We used to be able to import items under $800 and we can’t do that anymore,” she said, noting that the effect has hit fast-fashion, shoes, and electronics particularly hard. A Fashion Industry Bracing for 2026 — and Small Businesses Already Breaking Farley pointed out that the global fashion sector expects 2026 to be a very difficult year. Schulz agreed — and stressed that small U.S. importers are already in crisis. “For the most part… companies are hoping desperately that something will change,” she said. “Small businesses in apparel, footwear, other kinds of fashion are not going to be able to stay in business. We are trying to help them stay in business, but there is only so much you can do when the tariffs are a huge percentage of the import price.” Even large companies with international footprints can only hold out so long. The industry is effectively waiting on the Supreme Court — and running out of time. The Supreme Court Decision Could Trigger Refunds — But No Quick Fix As the Supreme Court prepares to rule on whether President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) , Schulz said the stakes are enormous. If the justices find the tariffs unlawful, “there will have to be a refund option,” she said. “ Importers should be following what they’re paying and tracking their expenses… Customs should be providing refunds. It’s not quick — they’re not quick to return money — but it can be done.” She also noted that the recent federal shutdown caused delays in seizures, inspections, and protests — all of which hit importers with storage fees and carrying costs. “The time ends up taking money,” she said. But even a ruling against the administration won’t solve supply chain challenges overnight. As Schulz reminded listeners: “Overall, there’s no easy way to manage this as a company.” With consumer prices rising and the Supreme Court’s decision imminent, importers must prepare for both outcomes: relief in the form of refunds or continued tariff pressure. If your business imports apparel, electronics, or other consumer goods, contact Schulz Trade Law today to audit your tariff exposure, review refund eligibility, and build a compliance plan that protects your bottom line. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates. 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 Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.
- Tariffs on Toys and Trucks: Michelle Schulz Explains Why Holiday Prices Keep Rising
Tariffs on Toys and Trucks: Michelle Schulz Explains Why Holiday Prices Keep Rising Trade attorney Michelle Schulz joins SiriusXM’s Road Dog Trucking to unpack how shifting tariffs are driving up costs for toys, furniture, and freight—and what that means for consumers and the trucking industry heading into 2026. November 26, 2025 Road Dog Trucking SiriusXM, Channel 146 Host: Mark Willis A Pricier Christmas Ahead With Thanksgiving around the corner, trade attorney Michelle Schulz , founder of Schulz Trade Law in Dallas, joined Road Dog Trucking News to discuss how tariffs are shaping holiday spending. She said consumers can expect to pay noticeably more for gifts this year. “Yes, I would say absolutely—you’re looking at over $100 more on average, and it will continue to rise,” Schulz explained. “Although some tariffs have been dialed back, and we have trade deals pending, many tariffs remain in place. They’re high one day, low the next, but still higher than normal overall.” She added that even familiar items like furniture and electronics are climbing fast. “I was just hearing yesterday from someone that buying furniture became an issue because prices are increasing weekly,” Schulz said. “The closer we get to Christmas, the farther into the tariffs we get.” Toys, Tariffs, and Sticker Shock The toy industry is being hit especially hard. “Toys can be made of all different materials subject to tariffs, and they come from countries under tariff,” Schulz noted. “We’re seeing the toy industry really struggle, with fewer imports and more expensive toys this year.” She pointed to fads like the Lab Boo Boo plush toy—this year’s hit item—as examples of how small electronic components can push prices higher. “It’s the electronics and textiles inside these toys,” she said. “Everything depends on what’s in it, how it’s categorized, and how much it’s valued.” Even everyday products like clothing are affected. “Textiles are subject to tariffs too,” Schulz added. “Everything that comes in from overseas eventually moves on trucks, and that means these costs ripple through the whole system.” Trucking, Delays, and a Tightening Supply Chain For the trucking industry, Schulz warned that the ripple effects could be significant. “We are seeing customs seizing shipments,” she said. “They’ll detain shipments if they think you’re underpaying, and sometimes those get stuck for months. That means storage fees—thousands of dollars per month in some cases.” As tariffs expand and enforcement tightens, Schulz said she expects the slowdown to continue. “We’ve reached a deal with China holding out at 10%, but next year it’s scheduled to go up to 34%. Even with delays, these tariffs aren’t going away,” she explained. “Everything from parts to oil and gas is going to cost more—and that directly impacts trucking.” Her outlook for 2026: cautious. “We’re seeing companies hold off on investments, and even layoffs in some cases,” she said. “This isn’t stopping this year—it’s going to carry through next year. From toy manufacturers to trucking fleets, tariff volatility is reshaping every link of the supply chain. If your company imports, ships, or distributes goods affected by tariffs, contact Schulz Trade Law today to assess your exposure, prevent costly delays, and develop strategies to navigate the year ahead. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates. 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 Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.
- Understanding CCATS and Its Impact on US Export Controls for Businesses Today and Tomorrow
Export controls shape how businesses move goods across borders, affecting global trade and compliance efforts. One key element in this system is the Commodity Classification Automated Tracking System , or CCATS . This system plays a crucial role in how US export controls are applied, influencing how companies classify and track their products for international trade. Understanding CCATS helps businesses avoid costly mistakes and stay competitive in a complex regulatory environment. Schulz Trade Law actively works to help businesses with CCATS . CCATS system interface showing commodity classification data What Is CCATS and Why Does It Matter? CCATS is a formal classification issued by the Bureau of Industry and Security (BIS) under the US Department of Commerce. When a business plans to export goods, it can request a CCATS number to determine the Export Control Classification Number (ECCN) for those goods. This classification identifies the level of control and licensing requirements for the product. The CCATS process helps businesses: Understand export restrictions on specific goods Determine if a license is required for export Ensure compliance with US export regulations Without a proper CCATS classification, companies risk shipping goods that violate export laws, leading to fines, shipment delays, or even loss of export privileges. How CCATS Impacts Businesses in Practice For businesses involved in global trade, CCATS affects several key areas: Compliance and Risk Management Companies must track the classification of their goods carefully. For example, a manufacturer of electronic components might submit a CCATS request to BIS to clarify if their product falls under controlled technology. This classification then guides how the product can be exported, including which countries require licenses. Failing to maintain accurate CCATS information can result in: Exporting controlled goods without a license Delays in customs clearance Penalties for non-compliance Streamlining Export Processes Having a CCATS number simplifies export documentation. Customs brokers and freight forwarders rely on the ECCN linked to CCATS to process shipments efficiently. This tracking reduces the risk of errors in paperwork and speeds up international trade. Example: A Tech Company’s CCATS Journey A US-based tech company developing advanced sensors submitted a CCATS request to BIS. The classification confirmed the sensors required a license for export to certain countries. By knowing this early, the company adjusted its sales strategy, avoided illegal exports, and maintained smooth import/export operations. Shipping containers stacked at a major international port Common Pitfalls in CCATS and How to Avoid Them Despite its benefits, businesses often face challenges with CCATS: Incomplete or inaccurate submissions: Providing unclear product descriptions or missing technical details can delay classification. Assuming classifications remain static: Changes in product design or regulations may require updated CCATS requests. Ignoring reclassification needs: Export controls evolve, and goods may shift categories, requiring businesses to track and update their CCATS status. To avoid these pitfalls, companies should: Maintain detailed product documentation Regularly review export control regulations Engage compliance experts to manage CCATS requests What to Watch for in the Future of CCATS and Export Controls The global trade environment is evolving, and so is the CCATS process. Businesses should prepare for: Increased automation and digital tracking: BIS is moving toward more automated systems to speed up classification and improve tracking accuracy. Expanded scope of controlled goods: Emerging technologies like AI, quantum computing, and advanced materials may face tighter export controls. Greater international coordination: Harmonizing export controls with allies will affect how CCATS classifications apply in global trade. Staying active in CCATS means regularly updating classifications and monitoring regulatory changes. This proactive approach helps businesses avoid compliance risks and adapt quickly to new export control landscapes. Logistics manager examining export compliance paperwork Why Businesses Must Stay Active in CCATS Remaining engaged with CCATS is not just about avoiding penalties. It supports: Efficient tracking of goods through the export process Clear understanding of licensing requirements Better planning for international sales and distribution Stronger compliance culture within the company Ignoring CCATS or treating it as a one-time task can lead to costly disruptions. Instead, businesses should integrate CCATS management into their ongoing compliance and export strategies. Resource Library Learn more about Trade Law. We have a series of articles highlighting the key components of international trade and compliance. Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.
- Tariffs on the Open Road: How Trade Policy Is Hitting Trucking, Retail, and the Holiday Season
Tariffs on the Open Road Michelle Schulz Explains How Trade Policy Is Hitting Trucking, Retail, and the Holiday Season As the Supreme Court deliberates on Trump’s tariff authority, trade attorney Michelle Schulz joins SiriusXM’s Road Dog Trucking to discuss how rising duties are driving up prices, tightening inventories, and reshaping the freight economy. November 18, 2025 Road Dog Trucking SiriusXM, Channel 146 Anchor: Mark Willis “Not So Merry” Holiday Outlook Speaking with SiriusXM’s Road Dog Trucking News , Dallas-based trade attorney Michelle Schulz warned that the holidays will bring higher prices, fewer deals, and tighter margins across the retail sector. “I would say not so merry,” Schulz said. “Prices are going up, and I am planning on higher prices during the Christmas season. We don’t have the Supreme Court ruling on the IEEPA tariffs yet… but we’re already seeing especially high tariffs on countries like India and sectors like shoes and hats—things we buy all the time for Christmas presents.” While consumers may still celebrate, Schulz said retailers and importers are struggling. “It’s impossible for some of our clients to provide significant cost reductions in this environment,” she explained. “Buyer beware—holiday deals may not be as great this year.” Business Belt-Tightening and Industry Whiplash Beyond the holidays, Schulz warned that the ripple effects of tariffs are dampening hiring, bonuses, and capital investment. “We’re seeing companies tightening their belts, reducing their workforce, not increasing it,” she said. “In every industry—oil and gas, manufacturing, retail—there’s a combination of confusion and fear.” She added that even companies with stocked inventory are running out of cushion. “ It’s getting less and less feasible to eat the cost or negotiate cheaper prices with foreign sellers,” she explained. The uncertainty has led to hesitation in investment and production: “They’re walking on eggshells. It changes day to day, and even Customs brokers are frustrated—they’re re-evaluating tariff rates constantly, and mistakes are almost inevitable.” Trucking, Manufacturing, and the Tariff Chain The trucking industry, Schulz noted, is being hit from both sides—by reduced freight volume and by higher equipment costs. “We’ll see some trucks a little less full, or combining shipments rather than single loads,” she said. “There are also higher tariffs on certain heavy-duty trucks, so the impact is direct." Even domestic manufacturing isn’t insulated. "Any company with metal content in its products is struggling,” Schulz explained. “We’ve had clients using metal detectors in warehouses to find whether there’s steel in something—because it could be subject to a 50% tariff.” When callers suggested that tariffs could boost U.S. manufacturing, Schulz agreed in theory but cautioned that globalization runs deep. “Manufacturing in the U.S. involves more foreign products than most people would guess,” she said. “We deal with that every day—there’s always one little part that becomes a problem.” From importers to truckers, everyone in the supply chain is feeling the tariff strain. If your company moves, sells, or manufactures goods impacted by recent tariffs, contact Schulz Trade Law today to audit your tariff exposure, review country-of-origin classifications, and develop compliance strategies that protect your bottom line. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates. 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 Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.
- Exploring National Security and Trade Tariffs
Trade tariffs have long been a tool used by governments to protect domestic industries and influence international trade. However, in recent years, the intersection of national security and trade tariffs has gained significant attention. This blog post explores how national security concerns shape trade tariffs, the mechanisms behind these policies, and their broader implications for global commerce. Understanding National Security Tariffs National security tariffs are trade barriers imposed by governments to protect critical industries and resources deemed essential for a country's safety and defense. Unlike traditional tariffs aimed primarily at economic protectionism, these tariffs are justified on the grounds of safeguarding national interests. For example, a country might impose tariffs on steel and aluminum imports to ensure a stable domestic supply for defense manufacturing. This approach helps prevent reliance on foreign suppliers that could be disrupted during geopolitical conflicts or trade disputes. Key reasons for national security tariffs include: Protecting critical infrastructure and defense industries Ensuring supply chain resilience for essential materials Preventing foreign control over strategic sectors Responding to geopolitical threats or trade imbalances These tariffs often spark debate because they blend economic policy with national security strategy, sometimes leading to tensions with trade partners and international organizations. Steel coils stored for national defense manufacturing The Role of National Security Tariffs in Trade Policy National security tariffs serve as a strategic tool within broader trade policy frameworks. Governments use them to balance economic interests with security priorities. This balancing act can be complex, as it involves assessing risks, economic impacts, and diplomatic relations. For instance, during trade disputes, countries may invoke national security to justify tariffs that would otherwise violate international trade agreements. This tactic can protect domestic industries but may also provoke retaliatory measures. Practical implications of national security tariffs include: Supply chain diversification: Encouraging domestic production to reduce dependency on foreign suppliers. Investment in critical sectors: Boosting funding and innovation in industries vital to national security. Trade negotiations: Using tariffs as leverage to achieve favorable terms or address unfair trade practices. Businesses affected by these tariffs should monitor government announcements and adjust sourcing strategies accordingly. Diversifying suppliers and investing in local capabilities can mitigate risks associated with sudden tariff changes. Cargo containers representing global trade impacted by tariffs What is Section 232? One of the most notable legal mechanisms for imposing national security tariffs in the United States is Section 232 . This provision allows the government to investigate imports that threaten national security and impose tariffs or quotas if necessary. Under Section 232, the Department of Commerce conducts investigations to determine whether imports of certain products, such as steel or aluminum, pose a risk to national security. If a threat is identified, the President can take action to restrict imports through tariffs or other trade remedies. Key features of section 232 include: Investigation process: A thorough review of import data, domestic industry health, and security implications. Presidential authority: The President decides on appropriate measures based on investigation findings. Scope: Applies to products critical to defense, infrastructure, and other security-related sectors. This law has been used in recent years to impose tariffs on steel and aluminum imports, citing national security concerns. While effective in some respects, it has also led to disputes with trade partners and challenges at the World Trade Organization. Government building symbolizing national security and trade policy Balancing Economic Impact and Security Needs While national security tariffs aim to protect vital interests, they can also have significant economic consequences. Tariffs often increase costs for manufacturers relying on imported materials, potentially leading to higher prices for consumers and reduced competitiveness. To balance these effects, policymakers must carefully evaluate: Industry dependence: How reliant is the domestic economy on imported goods? Economic impact: What are the potential costs to businesses and consumers? Security benefits: How critical is the industry to national defense and infrastructure? For businesses, understanding these factors is crucial. Companies should engage with policymakers, participate in public consultations, and develop contingency plans to navigate tariff changes. Recommendations for businesses include: Conduct supply chain risk assessments to identify vulnerabilities. Explore alternative suppliers in different regions. Invest in domestic production capabilities where feasible. Stay informed on trade policy developments and legal frameworks like Section 232 . By proactively managing these challenges, businesses can reduce exposure to tariff-related disruptions and contribute to national security objectives. The Future of National Security and Trade Tariffs As global geopolitical dynamics evolve, national security tariffs are likely to remain a prominent feature of trade policy. Emerging technologies, critical minerals, and digital infrastructure are new frontiers where security concerns intersect with trade. Governments may expand the use of tariffs and other trade remedies to protect sectors such as: Semiconductor manufacturing Rare earth minerals Cybersecurity technologies Energy infrastructure At the same time, international cooperation and dialogue will be essential to manage conflicts and maintain stable trade relations. Businesses and policymakers alike must adapt to this changing landscape by fostering resilience and innovation. Key takeaways for the future: National security tariffs will continue to influence global trade patterns. Legal frameworks like section 232 provide tools for governments to act swiftly. Collaboration between public and private sectors is vital to balance security and economic growth. Staying informed and agile is critical for businesses navigating these complexities. Understanding the evolving role of national security tariffs helps stakeholders prepare for challenges and seize opportunities in a rapidly changing world. Resour Contact Us Resource Library Learn more about Trade Law. We have a series of articles highlighting the key components of international trade and compliance. Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.
- Exploring the Benefits and Challenges of Free Trade Agreements
Trade agreements have become a cornerstone of global commerce, shaping how countries interact economically. These agreements aim to reduce barriers, promote exports, and foster economic growth. However, they also come with challenges that require careful consideration. Here we explore the benefits and challenges of trade agreements, providing practical insights and examples to help understand their impact. International shipping port showing global trade activity Understanding Trade Agreements and Their Importance Trade agreements are formal arrangements between countries that govern the rules of trade between them. They can be bilateral, involving two countries, or multilateral, involving several nations. The primary goal is to facilitate smoother trade by reducing tariffs, import quotas, and other trade barriers. Key benefits of trade agreements include: Market Access: Companies gain easier access to foreign markets, expanding their customer base. Economic Growth: Increased trade can stimulate economic activity and job creation. Investment Opportunities: Agreements often encourage foreign direct investment by providing a stable trade environment. Consumer Benefits: Consumers enjoy a wider variety of goods at lower prices due to reduced tariffs. For example, the European Union’s single market allows member countries to trade goods and services freely, boosting economic integration and growth. The Role of Trade Agreements in the Global Economy Trade agreements play a vital role in shaping the global economy by promoting cooperation and reducing conflicts. They help countries specialize in producing goods where they have a competitive advantage, leading to more efficient resource use worldwide. Types of trade agreements include: Free Trade Agreements (FTAs): These eliminate tariffs and quotas between member countries. For instance, the free trade agreement between the US and South Korea has significantly increased trade flows. Customs Unions: Countries agree to a common external tariff on imports from non-members. Common Markets: These go beyond customs unions by allowing free movement of labor and capital. Economic Unions: These integrate economic policies and often have a shared currency. Trade agreements also encourage the adoption of international standards, making it easier for businesses to operate across borders. Global map illustrating international trade routes Is NAFTA still in effect? The North American Free Trade Agreement ( NAFTA ) was a landmark trade deal between the United States, Canada, and Mexico, implemented in 1994. It aimed to eliminate most tariffs and facilitate cross-border trade in North America. However, NAFTA is no longer in effect as it was replaced by the United States-Mexico-Canada Agreement ( USMCA ) on July 1, 2020. The USMCA updated and modernized many provisions of NAFTA, addressing issues such as digital trade, labor rights, and environmental standards. Key changes under USMCA include: Stricter rules of origin for automobiles to encourage manufacturing in North America. Enhanced labor protections, particularly in Mexico. New provisions on intellectual property and digital trade. Mechanisms to resolve trade disputes more effectively. The transition from NAFTA to USMCA reflects the evolving nature of trade agreements and the need to adapt to new economic realities. Challenges Faced by Trade Agreements While trade agreements offer many benefits, they also present several challenges that countries and businesses must navigate. Economic Displacement One major concern is the displacement of workers and industries that cannot compete with imports. For example, some manufacturing sectors in developed countries have declined due to competition from lower-cost producers abroad. Sovereignty Issues Trade agreements often require countries to harmonize regulations and standards, which can limit national policy autonomy. This can be controversial when agreements affect areas like environmental regulations or labor laws. Unequal Benefits Not all participants benefit equally from trade agreements. Larger economies or more competitive industries may gain more, while smaller or less developed partners may struggle to keep up. Enforcement and Compliance Ensuring that all parties comply with the terms of an agreement can be difficult. Disputes over tariffs, subsidies, or intellectual property rights sometimes lead to trade tensions. Environmental and Social Concerns Some critics argue that trade agreements prioritize economic growth over environmental protection and social welfare. Balancing these interests remains a challenge. Practical Recommendations for Businesses and Policymakers To maximize the benefits and minimize the challenges of trade agreements, consider the following strategies: For Businesses: Stay informed about relevant trade agreements and their provisions. Explore new markets opened by agreements to diversify sales. Invest in innovation and efficiency to remain competitive. Understand compliance requirements to avoid penalties. For Policymakers: Negotiate agreements that include strong labor and environmental standards. Provide support and retraining programs for displaced workers. Promote transparency and stakeholder engagement during negotiations. Establish effective dispute resolution mechanisms. By adopting these approaches, both businesses and governments can better leverage trade agreements for sustainable growth. Handshake symbolizing an international trade agreement and cooperation Looking Ahead: The Future of Trade Agreements Trade agreements will continue to evolve in response to global economic shifts, technological advances, and political changes. Emerging issues such as digital trade, data privacy, and climate change are increasingly shaping negotiations. Countries may also pursue more regional and bilateral agreements as multilateral talks face challenges. The rise of protectionism in some regions underscores the importance of carefully balancing openness with domestic interests. Ultimately, successful trade agreements require cooperation, flexibility, and a focus on inclusive benefits. Understanding both the advantages and challenges is essential for navigating the complex world of international trade. Resource Library Learn more about Trade Law. We have a series of articles highlighting the key components of international trade and compliance. Resrouces Resources Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.
- Understanding How Country of Origin Impacts Trade Policies
In the complex world of international commerce, the country of origin plays a crucial role in shaping trade policies. It influences tariffs, import restrictions, and regulatory compliance, affecting how goods move across borders. Understanding this concept is essential for businesses, policymakers, and consumers alike. Here, we explore how the country of origin impacts trade policies, providing practical insights and examples to help navigate global trade effectively. Schulz Trade Law Services include Country of Origin Determination . The Role of Trade Policies in Global Commerce Trade policies are the rules and regulations that govern the exchange of goods and services between countries. These policies determine tariffs, quotas, subsidies, and standards that affect international trade flows. Governments use trade policies to protect domestic industries, promote exports, and ensure national security. Trade policies can be broadly categorized into: Tariffs : Taxes imposed on imported goods to make them more expensive and less competitive compared to local products. Quotas : Limits on the quantity of certain goods that can be imported or exported. Subsidies : Financial support provided to local businesses to enhance their competitiveness. Non-tariff barriers : Regulations such as safety standards, labeling requirements, and licensing that affect trade. The country where a product is made often determines which trade policies apply. For example, goods originating from countries with free trade agreements may enjoy reduced tariffs or exemptions. Conversely, products from countries under trade sanctions may face strict restrictions. International shipping port with containers How Trade Policies Are Influenced by Country of Origin Trade policies are closely linked to the country of origin because governments use this information to apply specific rules. The country of origin is the country where a product is manufactured, assembled, or substantially transformed. It is a key factor in customs declarations and trade compliance. Here are some ways the country of origin influences trade policies: Tariff Classification and Rates Customs authorities apply tariffs based on the product’s origin. For instance, under the United States-Mexico-Canada Agreement (USMCA), goods made in member countries benefit from lower tariffs compared to those from non-member countries. Trade Agreements and Preferences Countries often enter into bilateral or multilateral trade agreements that grant preferential treatment to goods from partner nations. This can include reduced tariffs, simplified customs procedures, or exemption from quotas. Anti-Dumping and Countervailing Duties If a country believes that imported goods are priced unfairly low or subsidized, it may impose additional duties on products from specific countries to protect domestic industries. Sanctions and Embargoes Trade policies may restrict or prohibit imports from certain countries due to political or security reasons. These restrictions are strictly enforced based on the product’s country of origin. Labeling and Compliance Requirements Products must often carry labels indicating their country of origin. This transparency helps consumers make informed choices and ensures compliance with trade regulations. Understanding these influences helps businesses plan their supply chains, pricing strategies, and market entry approaches effectively. Customs officer inspecting products What is an example of country of origin? To illustrate the concept of country of origin, consider a smartphone assembled in Mexico using components manufactured in China and South Korea . Determining the country of origin for trade purposes depends on where the product underwent its last substantial transformation. In this case, if the assembly in Mexico significantly changes the product’s form, function, or use, Mexico would be considered the country of origin. This classification affects the tariffs applied when the smartphone is imported into the United States under the USMCA agreement. Another example is textiles. If fabric is woven in India but cut and sewn into garments in Bangladesh, the country of origin might be Bangladesh if the sewing process is deemed the substantial transformation. These examples highlight the importance of understanding the rules of origin, which vary by product and trade agreement. Businesses must carefully document and verify the origin to benefit from trade preferences and avoid penalties. /di Textile factory with workers sewing garments Practical Recommendations for Businesses Navigating Trade Policies For companies engaged in international trade, managing the impact of country of origin on trade policies is critical. Here are actionable recommendations: Conduct a thorough origin analysis Determine where your products undergo substantial transformation. Consult trade experts or legal advisors to ensure accurate classification. Stay updated on trade agreements Monitor changes in trade agreements and tariffs that may affect your supply chain. Use government resources and trade databases for the latest information. Maintain detailed documentation Keep records of manufacturing processes, supplier certifications, and shipping documents to prove the country of origin during customs inspections. Leverage trade compliance software Use technology to automate classification, track regulatory changes, and generate compliance reports. Plan supply chains strategically Consider sourcing and manufacturing locations that optimize tariff benefits and minimize trade barriers. Train staff on trade regulations Educate your team on the importance of country of origin and trade policy compliance to avoid costly mistakes. By implementing these strategies, businesses can reduce risks, lower costs, and improve their competitiveness in global markets. The Future of Trade Policies and Country of Origin Considerations Trade policies continue to evolve in response to geopolitical shifts, economic trends, and technological advancements. The significance of the country of origin remains central, but new challenges and opportunities are emerging. Digital trade and e-commerce As online sales cross borders, verifying the country of origin for small shipments becomes more complex, requiring innovative solutions. Sustainability and ethical sourcing Consumers and regulators increasingly demand transparency about where products come from, pushing companies to disclose origin information more clearly. Trade tensions and protectionism Political conflicts may lead to stricter origin rules and increased scrutiny of supply chains. Automation and AI in customs Advanced technologies will enhance the accuracy and speed of origin verification, improving compliance and reducing delays. Businesses that stay informed and adaptable will be better positioned to navigate these changes. Understanding how the country of origin impacts trade policies is not just a regulatory necessity but a strategic advantage in the global marketplace. For more detailed information on the topic, visit country of origi n, or reach out to Schulz Trade Law today .
- Slash Import Duties with the First Sale Rule: A Comprehensive Guide to Requirements, Pitfalls, and Resources
Slash Import Duties with the First Sale Rule: A Comprehensive Guide to Requirements, Pitfalls, and Resources Schulz Trade Law PLLC May 28, 2025 In the wake of recent tariff adjustments under the Trump administration, U.S. importers are seeking innovative ways to minimize duty exposure while ensuring compliance with U.S. Customs and Border Protection (CBP) regulations. The First Sale Rule offers a powerful customs valuation strategy that can significantly reduce duty costs in multi-tiered transactions—if executed correctly. This guide explores the mechanics of the First Sale Rule , its critical requirements, common pitfalls, and practical resources to help importers unlock its benefits. Download our Step-by-Step PDF Guide for The First Sale Rule. Understanding the First Sale Rule The First Sale Rule allows importers to declare the manufacturer’s “first sale” price —the price paid by a middleman to the manufacturer—as the dutiable value, rather than the middleman’s higher invoice price to the U.S. importer. By using the lower first sale price, importers can reduce their duty liability, especially for goods subject to high duty rates or imported in large volumes. How It Works: A Real-World Example Imagine a manufacturer in Bangladesh sells a pair of jeans to a Singapore trading company for $8 per unit. The trading company resells the jeans to a U.S. importer for $15 per unit. With a duty rate of 30%: Without First Sale Rule : Duties are based on the $15 invoice price, resulting in $4.50 per unit in duties. With First Sale Rule : Duties are based on the $8 first sale price, resulting in $2.40 per unit in duties. Example: For a shipment of 50,000 pairs of jeans, the First Sale Rule saves $105,000 ($225,000 vs. $120,000 in duties). These savings can transform an importer’s cost structure, enhancing competitiveness in price-sensitive markets. Close-up of trade documents with a magnifying glass highlighting compliance terms, illustrating documentation needs for the First Sale Rule Key Requirements for the First Sale Rule To apply the First Sale Rule, importers must satisfy three CBP criteria, each requiring meticulous documentation and a fact-based analysis. CBP evaluates the totality of the circumstances to determine eligibility.[^4] Goods Destined for the U.S. The goods must be clearly intended for export to the U.S. from the time of manufacture through final delivery. This intent must be documented in contracts, purchase orders, and shipping records. Goods produced for multiple markets or redirected to the U.S. mid-transit may not qualify. Arm’s Length Transactions. Each sale in the transaction chain must be at arm’s length, meaning the price is unaffected by relationships between parties. For unrelated parties, arm’s length is presumed. For related parties (e.g., a manufacturer and its subsidiary), importers must prove the price reflects market value, often through a transfer pricing study or comparable unrelated-party transactions.[^5] Bona Fide Sales. Each transaction must involve a genuine sale, with a transfer of title and risk of loss for a meaningful period. CBP scrutinizes whether the middleman assumes ownership and risk, even briefly. Transactions involving “flash title”—where title passes momentarily without risk transfer—are unlikely to qualify.[^6] Common Pitfalls and Mitigation Strategies The First Sale Rule’s benefits come with compliance challenges. CBP’s increased scrutiny means importers must anticipate and address potential issues proactively. Below are the most common pitfalls and how to avoid them: Goods Not Destined for the U.S. If goods are manufactured for a global market or rerouted to the U.S. after production, CBP may reject the first sale valuation. Solution : Ensure all documentation—purchase orders, contracts, and shipping records—explicitly designates the U.S. as the destination from the outset. Work with suppliers to align production and logistics with U.S. export intent. Insufficient Documentation CBP requires a comprehensive paper trail, including contracts, invoices, payment records, proof of title transfer, and shipping documents. Gaps or inconsistencies can lead to audits or duty reassessments.[^7] Solution : Develop a standardized documentation checklist and retain records for at least five years, as required by CBP. Use digital trade platforms to centralize and organize documents. Flash Title Issues Transactions where the middleman holds title fleetingly (e.g., during transit) may not meet the bona fide sale requirement. Solution : Structure agreements to ensure the middleman assumes meaningful risk, such as through insurance, liability clauses, or inventory holding periods. Document these arrangements clearly. Related-Party Pricing Issues For related parties, CBP closely examines whether the first sale price aligns with market rates. Failure to substantiate arm’s length pricing can disqualify the first sale. Solution : Conduct a transfer pricing analysis or benchmark prices against unrelated-party transactions. Engage customs or tax professionals to validate pricing methodologies. Industries Poised for Savings The First Sale Rule is particularly impactful for industries with high duty rates or complex supply chains. Key beneficiaries include: Apparel and Textiles : Duty rates of 15%–40% make first sale savings substantial. Electronics : High-value goods with moderate duties benefit from lower dutiable values. Footwear : High duties (up to 37.5%) amplify savings potential. Consumer Goods : Products like toys or housewares with multi-tiered supply chains are prime candidates. For instance , an electronics importer sourcing components through a Taiwan distributor could declare the manufacturer’s price in China, reducing duties significantly. Similarly , a footwear retailer importing sneakers via a trading company could save millions annually by leveraging the first sale. Advanced Considerations Beyond the basics, importers should consider the following to maximize the First Sale Rule’s benefits: Supply Chain Optimization : Restructure supply chains to ensure clear U.S. export intent and robust middleman roles. This may involve renegotiating contracts or selecting middlemen with established risk-bearing capacity. CBP Advance Rulings : For high-value or complex transactions, request a binding ruling from CBP to confirm first sale eligibility. This reduces audit risk and provides certainty.[^9] Integration with Other Duty-Saving Programs : Combine the First Sale Rule with programs like Foreign Trade Zones (FTZs) or Duty Drawback to amplify savings. Consult a trade expert to explore synergies.[^10] Audit Preparedness : CBP’s focus on valuation means audits are likely. Conduct internal compliance reviews to identify vulnerabilities and strengthen documentation. Step-by-Step Guide to Implementation To adopt the First Sale Rule effectively, follow these steps: Assess Eligibility. Analyze your supply chain to confirm the goods are destined for the U.S., transactions are at arm’s length, and sales are bona fide. Identify all tiers and parties involved. Build a Documentation Framework. Collaborate with suppliers and middlemen to collect and organize required documents, including contracts, invoices, payment records, and proof of title transfer. Use a checklist to ensure completeness. Validate Pricing. For related-party transactions, conduct a transfer pricing study or market benchmarking to substantiate arm’s length pricing. Retain supporting data for CBP review. Seek Expert Guidance. Engage customs attorneys, trade compliance specialists, or transfer pricing consultants to review your first sale strategy and address complex issues like related-party pricing or flash title risks. Monitor and Audit. Regularly review your first sale program to ensure compliance as supply chains, tariffs, or CBP policies evolve. Conduct periodic internal audits to identify and resolve gaps. Network of resources for First Sale Rule and compliance. Essential Resources for Importers To support your First Sale Rule implementation, leverage these resources: CBP Informed Compliance Publications : Review CBP’s “First Sale” publication for detailed guidance and case studies.[^11] CBP Rulings Online Search System (CROSS) : Search CROSS for precedent rulings on first sale valuations specific to your industry or product.[^12] U.S. International Trade Commission (USITC) : Use the Harmonized Tariff Schedule to determine duty rates and estimate savings potential.[^13] Trade Associations : Organizations like the American Association of Exporters and Importers (AAEI) and the National Customs Brokers & Forwarders Association of America (NCBFAA) offer training, webinars, and compliance tools.[^14][^15] World Customs Organization (WCO) : Explore the WCO’s Customs Valuation Compendium for global valuation standards that inform CBP’s approach.[^16] Schulz Trade Law PLLC : Our team specializes in customs valuation and compliance. For tailored advice or to request a first-sale feasibility assessment, email info@schulztradelaw.com . Why Act Now? With CBP intensifying its focus on customs valuation and tariff policies shifting, relying on outdated or assumption-based strategies is a recipe for audits, penalties, or missed savings.[^17] The First Sale Rule is more than a compliance tool—it’s a strategic lever to reduce costs, enhance profitability, and gain a competitive edge. However, its success depends on rigorous planning, documentation, and compliance. The First Sale Rule can unlock significant savings if you’re importing apparel, electronics, footwear, or consumer goods. Don’t let complexity deter you—our team at Schulz Trade Law PLLC is ready to guide you through every step, from feasibility analysis to CBP ruling requests. Ready to slash your duty costs? Contact us today to explore how the First Sale Rule can transform your import strategy. About Us Schulz Trade Law PLLC is a boutique law firm dedicated to customs, trade compliance, and international trade law. Follow us on LinkedIn for actionable insights and updates. Subscribe to our blog to receive updates. Sources 1 . U.S. Customs and Border Protection, “Customs Valuation Encyclopedia,” https://www.cbp.gov/trade/rulings/informed-compliance-publications. 2. U.S. Customs and Border Protection, “What Every Member of the Trade Community Should Know About: First Sale,” Informed Compliance Publication, https://www.cbp.gov/trade/rulings/informed-compliance-publications. 3. U.S. International Trade Commission, “Harmonized Tariff Schedule of the United States,” https://hts.usitc.gov/. 4. U.S. Customs and Border Protection, “Customs Valuation Encyclopedia,” https://www.cbp.gov/trade/rulings/informed-compliance-publications. 5. World Customs Organization, “Customs Valuation Compendium,” http://www.wcoomd.org/en/topics/valuation.aspx. 6 U.S. Customs and Border Protection, “What Every Member of the Trade Community Should Know About: First Sale,” Informed Compliance Publication, https://www.cbp.gov/trade/rulings/informed-compliance-publications. 7. U.S. Customs and Border Protection, “Recordkeeping,” https://www.cbp.gov/trade/recordkeeping. 8. U.S. International Trade Commission, “Harmonized Tariff Schedule of the United States,” https://hts.usitc.gov/. 9 . U.S. Customs and Border Protection, “Rulings Program,” https://www.cbp.gov/trade/rulings. 10. U.S. Customs and Border Protection, “Foreign Trade Zones,” https://www.cbp.gov/trade/programs-administration/foreign-trade-zones. 11. U.S. Customs and Border Protection, “What Every Member of the Trade Community Should Know About: First Sale,” Informed Compliance Publication, https://www.cbp.gov/trade/rulings/informed-compliance-publications. 12. U.S. Customs and Border Protection, “CBP Rulings Online Search System (CROSS),” https://rulings.cbp.gov/. 13. U.S. International Trade Commission, “Harmonized Tariff Schedule of the United States,” https://hts.usitc.gov/. 14. American Association of Exporters and Importers, “Resources,” https://www.aaei.org/resources. 15. National Customs Brokers & Forwarders Association of America, “Education,” https://www.ncbfaa.org/education. 16. World Customs Organization, “Customs Valuation Compendium,” http://www.wcoomd.org/en/topics/valuation.aspx. 17. U.S. Customs and Border Protection, “Trade Enforcement,” https://www.cbp.gov/trade/trade-enforcement .
- Beating the Tariff Tsunami: Trade Strategies You Need to Know
Beating the Tariff Tsunami: Trade Strategies You Need to Know Simply Trade Podcast Feb 13, 2025 In the ever-changing landscape of international trade, compliance professionals are the unsung heroes, tasked with steering their organizations through the choppy waters of tariffs, regulations, and shifting policies. The world of international trade has been in a state of flux, with tariffs, trade wars, and policy changes with the Trump administration creating a complex and often unpredictable environment for businesses when considering trade strategies. In this episode, we sit down with Michelle Schultz and Marina Mekheil from Schultz Trade Law to explore practical solutions for navigating these turbulent waters. As seasoned professionals with experience in both the public and private sectors, they offer a unique perspective on how companies can stay ahead of the curve and protect their bottom line. Key Points The Simply Trade podcast dives into the turbulent world of trade compliance, unpacking the challenges and opportunities presented by fluctuating tariffs and global trade tensions. Joined by Michelle Schulz and Marina Mekheil from Schulz Trade Law , the conversation offers a wealth of practical insights for companies navigating this high-stakes landscape. The discussion kicks off with a stark reality: trade compliance is no longer a back-office function but a strategic asset. Schulz and Mel stress that compliance teams can save companies significant costs by leveraging tools like Chapter 98 provisions, duty drawback programs, and free trade agreements. Chapter 98, often underutilized, allows duty-free treatment for goods like U.S. products returned after repair or processing abroad, but it demands meticulous documentation. Similarly, duty drawback programs, while complex and slow—sometimes taking years—can recover paid tariffs if companies maintain impeccable records and navigate inventory methods like FIFO or LIFO. Proactive Engagement A recurring theme is the need for proactive engagement. Schulz emphasizes integrating trade experts early in supply chain decisions, contract negotiations, or market expansions to avoid costly last-minute fixes. This foresight is critical in a world where tariffs can shift overnight, as illustrated by sudden changes in Colombia’s trade policies. Agility, the experts argue, is non-negotiable. The episode also underscores the evolving role of compliance as a value center . Far from merely avoiding penalties, compliance teams can recover funds and drive savings, making them indispensable at the executive table. However, this requires clear, concise communication. Mekheil highlights the importance of distilling complex tariff impacts into actionable briefings for time-strapped executives, ensuring informed decisions and management support. Teamwork Collaboration emerges as another key takeaway. Effective tariff mitigation often hinges on teamwork between trade lawyers, customs brokers, and internal compliance staff. Whether setting up foreign trade zones or filing drawback claims, this multidisciplinary approach tailors solutions to a company’s unique needs. Next Steps Investigate audit classifications, understand cost drivers, and stay adaptable. For compliance professionals and executives alike, the message is clear: embrace trade compliance as a strength to not only survive but thrive in today’s unpredictable trade environment. 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.
- Tariffs Tighten on Furniture and Wood
Tariffs Tighten on Furniture and Wood Michelle Schulz Explains What’s Ahead for U.S. Buyers and Businesses International trade attorney Michelle Schulz outlines how new furniture and cabinetry tariffs— rising as high as 50% —are set to increase prices and pressure both importers and consumers. October 17, 2025 WBAP Morning News WBAP News Host: Ernie Brown and Carla Marion New Tariffs Take Effect During her interview with WBAP Radio in Dallas–Fort Worth, Michelle Schulz confirmed that the latest round of tariffs is already being felt across the furniture and cabinetry markets. “As of Tuesday, the new thing is furniture, wood cabinetry, kitchen cabinets that are imported are subject to a 25% tariff,” she said. “Vanities and associated products also 25%. Furniture and other cabinetry can go up to 50%, and we’re expecting this to increase to 50% for everything by January 1.” Schulz noted that the changes are happening fast and may continue to fluctuate: “I can’t predict if this will really happen or if this will change again, but this week, it’s happening.” Rising Costs and Consumer Confusion When asked whether consumers can see the tariff costs reflected in retail prices, Schulz explained that it’s not always transparent. “You might see a line that shows a tariff charge—or you might not,” she said. “There’s no requirement that a company show you which part is the tariff. But our clients are hiking up prices because they can’t keep up.” With supply chains still strained from earlier trade actions, the combination of new duties and high material costs could make furniture, cabinetry, and home goods even more expensive heading into 2026. How Tariffs Are Applied Schulz also broke down how tariffs are actually assessed—a common source of confusion among consumers. “The tariff is assessed at the time of customs entry,” she said. “Your tariff depends on what the tariff code was for the item at the time of entry. If you import a complete piece of furniture, you pay the tariff on the complete piece. If you’re importing components to assemble here, the tariff is on the components coming in.” She added that correct classification is critical: “ It’s important to understand whether your tariff coding is correct. If it’s not, you could be overpaying—or facing compliance problems later.” Tariff classifications, rates, and enforcement are shifting rapidly—and they directly affect your bottom line. If your business imports furniture, wood products, or other home goods, contact Schulz Trade Law today to review your tariff codes, ensure compliance, and identify cost-saving opportunities before the next round of increases. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates.
- Tariffs, Emergencies, and Executive Power
Tariffs, Emergencies, and Executive Power Michelle Schulz on What the Supreme Court’s Ruling Could Mean for Businesses Trade attorney Michelle Schulz explains the Supreme Court’s scrutiny of Trump’s tariff authority, why the case could redefine executive power, and how billions in refunds could reshape trade compliance. November 6, 2025 All Talk with Kevin Dietz WJR Radio Detroit, Michigan Anchor: Kevin Dietz The Supreme Court Puts Tariff Power Under the Microscope Following the Supreme Court’s oral arguments on President Trump’s tariffs, international trade attorney Michelle Schulz , founder of Schulz Trade Law, shared her insights on WJR Radio Detroit . She noted that justices across the spectrum pressed both sides on the limits of executive authority. “They had a lot of tough questions for the U.S. government about whether the President really has this authority to do something on his own as broad as applying taxes,” Schulz said. “They will consider whether this is, in fact, an emergency and also if this is just too broad, because the President has asserted that there is an extraordinary threat due to our trade deficit.” Schulz observed that the justices appeared skeptical that a trade imbalance alone could qualify as an emergency. “It’s hard to pin down where the exact threat is,” she said. History and Precedent: Has This Ever Been Done Before? The Court’s questioning frequently turned to history—specifically whether any prior president had used the International Emergency Economic Powers Act (IEEPA) to impose tariffs. Schulz, who has practiced trade law for over two decades, said she had never seen it used this way. “The IEEPA is typically used when we have something dangerous that we don’t want to go out of the country, like sanctions or export controls,” she explained. “Not for leverage in trade agreements and tariffs.” She added that the government’s only historical example—President Nixon’s temporary 10% tariff in the 1970s—was narrow and short-lived. “That was very limited,” she said. “Here we have an emergency act being used to allow unlimited tariffs. We don’t have any precedent for this.” Possible Outcomes: Refunds, Administrative Chaos, and Future Limits If the Supreme Court strikes down the tariffs, Schulz expects a long, complex refund process. “It would be an administrative burden on both customs and importers that is astronomical,” she said. “It probably will be a mess—but that doesn’t change whether the law actually covers tariffs or not.” At the same time, Schulz pointed out that the ruling could reshape presidential flexibility during future global crises. “It could limit flexibility,” she acknowledged, “but presidents will still have plenty of avenues to act—through export controls, national security laws, and unfair trade investigations under the Commerce Department or the U.S. Trade Representative.” Her bottom line: “It’s almost impossible to say one administration is overreaching when both have claimed unlimited authority to tax U.S. importers. This case may finally define where that line is.” The Supreme Court’s decision will affect not only Washington’s trade policy—but also how every importer plans, prices, and reports their goods. If your business is navigating tariffs or preparing for potential refunds, contact Schulz Trade Law today for guidance on compliance strategy, refund processes, and long-term trade planning. Trade on, but trade informed! Subscribe to Schulz Trade Law for more updates.













