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Publication Fleeing the Scene The Technology Sector's Reaction to Reciprocal Tariffs July 15, 2025 Circuits , Volume 30 Computer & Technology Section Congratulations to Jacob Barefield on His Publication in Circuits! We're thrilled to congratulate Jacob Barefield , Associate Attorney at Schulz Trade Law PLLC, for having his insightful article published in the July 2025 issue of Circuits , the e-Journal of the Computer & Technology Section of the State Bar of Texas! In the July 2025 edition of Circuits , starting on page 9, Jacob dives into the technology sector's response to the Trump Administration's aggressive reciprocal tariff policies, which were implemented in April 2025 under the International Emergency Economic Powers Act (IEEPA). Jacob examines how tech giants are scrambling to adapt to skyrocketing tariffs—such as China's 145% rate on U.S. tech imports—and the resulting frenzy to restructure supply chains. From shifting foreign direct investment (FDI) and manufacturing to countries like India, Vietnam, and Mexico, to leveraging "substantial transformation" rules for changing country of origin (COO), the article breaks down strategic moves by companies like Apple to mitigate these trade barriers. Key highlights include: President Trump's Truth Social announcements signaling broad investigations into the electronics supply chain. Exemptions for certain products like smartphones and computers, but with uncertainty about their longevity. The push for "debrasing through tariffs" and its impact on U.S. tech imports from China. Case studies on Apple's production shifts from China to India and Vietnam, and potential pitfalls if new trade agreements aren't secured. This article offers essential insights for businesses navigating today's volatile international trade landscape, highlighting why relocation strategies may provide only temporary relief without long-term trade agreements. Please read the full article for a deep dive into these critical trade policy changes and what they mean for your business! Note: This article was drafted on May 1, 2025, and does not include an analysis of events or government actions that occurred between May 1, 2025, and the date this article was published. At Schulz Trade Law PLLC, we're proud of Jacob's contributions to trade law discourse. If you're facing tariff challenges or need guidance on supply chain strategies, contact us today! 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. Subscribe  to receive updates.

Trump's Tariff Onslaught: Expert Strategies to Shield Your Business from Soaring Costs July 14, 2025 This Morning with Gordon Deal This Morning Show Host: Gordon Deal In an era of escalating trade tensions, US companies are grappling with the financial implications of President Trump's tariffs. A recent estimate from the JPMorgan Chase Institute  highlights an additional $82 billion  in costs for mid-sized US firms, with the potential for this to double if rates revert to peak levels from April. Adding to the urgency, Trump's recent announcement on Truth Social  imposes a 30% tariff on goods from the European Union and Mexico, effective August 1, 2025. Trade attorney Michelle Schulz , Founder and Managing Partner of Schulz Trade Law in Dallas, joined " This Morning with Gordon Deal " on July 14, 2025, to discuss these developments. Drawing from her extensive experience in international trade law, Schulz shared practical advice for businesses navigating this challenging landscape. This blog post breaks down her key insights, offering actionable guidance for importers, manufacturers, and distributors facing rising tariff burdens. LISTEN to the INTERVIEW Understanding the Tariff Impact on US Importers and Manufacturers The tariff announcements have sent ripples through supply chains, prompting businesses to explore every avenue for relief. Schulz emphasized the immediate challenges: "We're hearing that they're trying every strategy they have in their side book to try to get through these tariffs, whether that's mitigation or special duty savings programs. It's very difficult for our clients right now." Tariffs are applied as a percentage of the goods' value upon import, with the US buyer—whether an importer, distributor, or manufacturer—bearing the cost. This universality means no sector is immune, but the approach to mitigation must be tailored. Schulz explained, "We really have to look at it case by case, because each case is different. You'll have tariffs that apply to the value of the goods depending on which country you're importing from, and then the importer pays those terms as a percentage." For businesses importing final products, parts, or items for servicing and re-export, opportunities exist to reduce exposure. One key tactic involves re-evaluating valuations through Customs rulings to lower the taxable base: "Sometimes what we can do is take a second look at the value and get the value lower using specific Customs rulings that allow you to use a lower value. It's like chipping away at it bit by bit, because we can't eliminate the whole thing." Proven Mitigation Tactics: From Foreign Trade Zones to Supply Chain Pivots Schulz's firm advises clients on a spectrum of strategies, adapting to whether the client is a manufacturer or pure importer. A standout option for manufacturers is leveraging temporary imports and Foreign Trade Zones (FTZs). As Schulz noted, "In some cases, we have companies that are importing final products. Sometimes they're importing parts of products, and in other cases, they're importing products that they will service and then ship back out. So depending on the situation, one example where we can save money is on temporary imports, where manufacturers might be manufacturing in, say, a Foreign Trade Zone in the US, they can manipulate the goods and then export them back out without ever officially entering the goods into the US and that's a big savings for manufacturers." Beyond these, businesses are pursuing broader relief measures. " At this point, they're looking for some sort of relief . We have some clients who are pursuing litigation, some who are going in for Customs rulings on specific issues, and other clients that just continue to pivot," Schulz said. In extreme cases, this includes relocating operations: "We recently had a company decide to move their manufacturing to France instead of the US for this reason. So in some cases, it's a complete supply chain difference." These tactics underscore the importance of proactive trade law consultation to minimize costs and maintain competitiveness amid US import tariffs and global trade disruptions. Future Outlook: Rising Challenges and Consumer Cost Implications Looking ahead, Schulz anticipates a more complex environment for US importers. "I think it's going to continue to get more and more confusing and more and more difficult for the US importer, because the tariffs, the ones that have been announced as recently as today and yesterday, have been pretty high. We're looking at tariffs 20% 30%," she warned. The ripple effects extend beyond businesses, as these costs inevitably trickle down: " That is always going to flow down into the cost of goods to the consumer , the US importer, typically can't bear that cost, and just because the profit margins aren't that great." As trade policies evolve, partnering with experienced trade attorneys like those at Schulz Trade Law can provide the clarity and strategies needed to thrive. For personalized advice on tariff mitigation, Customs rulings, or supply chain optimization, contact our team today to safeguard your operations against ongoing trade uncertainties. 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. Subscribe  to receive updates.

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. Illustration of a global supply chain showing goods moving from an Asian factory to a U.S. port via a middleman, highlighting 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 .

Tariff Turmoil 2025: What It Means for Your Business Michelle Schulz Breaks It Down on WBAP WBAP: The James Parker Show July 15, 2025 “Tariffs haven’t disappeared — they’re just flying under the radar. But when they hit, they’ll hit hard.” — Michelle Schulz In a fast-moving interview on WBAP Radio’s James Show  (July 15, 2025), Michelle Schulz — Founding and Managing Partner of Schulz Trade Law — cuts through the noise to explain how international tariff policy is about to shake the U.S. economy. While most headlines have shifted elsewhere, a wave of new tariffs against countries like Canada, Mexico, and even European allies is fast approaching. Schulz warns that businesses and consumers alike will soon feel the financial fallout — and offers real-world strategies to prepare and save. From the status of pending trade deals to why the stock market hasn’t blinked (yet), this candid conversation is packed with insight and practical takeaways. Read below for key highlights, quotes, and expert analysis. If your company is exposed to global trade, now is the time to review your strategy. Contact Schulz Trade Law   today for personalized guidance. 1. The Calm Before the Storm: Tariffs Still Matter Host James Parker opens by noting how tariffs have quietly fallen out of public discussion. Schulz explains why the effects have been delayed — but not for long. Michelle Schulz says: “It’s nearly impossible to navigate, but I think it’s really going to flow down to the consumer in the next few months… when U.S. importers pass the cost to the buyers.” 2. Few Deals, Big Deadlines: What’s Coming Next The administration promised 90 trade deals in 90 days. According to Schulz, we’re nowhere close — and time is running out. Michelle Schulz explains: “We have probably… less than 20. And some are just letters — saying, ‘This is what we’re going to charge you unless you negotiate.’ And those tariffs are high.” 3. Neighbors in the Crosshairs: Canada & Mexico Even long-standing trading partners aren't safe. Tariffs on Canada and Mexico are still on the table — despite existing free trade agreements. Michelle Schulz warns: “Both Mexico and Canada are scheduled to be tariffed at higher rates — 35% is the rate we’re looking at now. And yes, retaliation is likely.” 4. Why the Market Hasn’t Reacted — Yet Despite these threats, stock markets remain near all-time highs. Schulz points to savvy corporate stockpiling — but says that buffer is running out. Michelle Schulz notes: “It’s a timing issue. A lot of clients stocked up early. But tariffs are about to apply to virtually every country… and that changes everything.” 5. Practical Steps for Businesses to Cut Tariff Costs Schulz outlines how businesses can protect themselves through proper valuation, classification, and the use of available duty-saving programs. Michelle Schulz advises: “We take a technical dive into their trade data… A lot of companies don’t understand customs valuation and overvalue — it’s one small way we reduce overall costs.” Don’t Wait for the Headlines to Catch Up The 2025 tariff wave is building. Whether you import raw materials, finished goods, or rely on global supply chains, this has a direct impact on your bottom line. Get ahead.   Contact Schulz Trade Law for expert legal strategies tailored to your business. Subscribe to receive updates. The James Parker Show The James Parker Show  [ Facebook ] @WBAP247NEWS Show:  The James Show Host:   James Parker  // @jamesparkershow https://www.facebook.com/thejamesparkershow/ https://www.instagram.com/jamesparkershow/ https://www.youtube.com/@thejamesparkershow 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.

Panelist: Kelly McCorkle 𝐌𝐨𝐝𝐮𝐥𝐞 𝟒: 𝐄𝐀𝐑 𝐋𝐢𝐜𝐞𝐧𝐬𝐢𝐧𝐠 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬: 𝐑𝐞𝐝𝐮𝐜𝐢𝐧𝐠 𝐭𝐡𝐞 𝐑𝐢𝐬𝐤 𝐨𝐟 𝐃𝐞𝐥𝐚𝐲𝐬, 𝐃𝐞𝐧𝐢𝐚𝐥𝐬, 𝐚𝐧𝐝 𝐑𝐖𝐀𝐬. July 21, 2025 𝐄𝐀𝐑 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 & 𝐋𝐢𝐜𝐞𝐧𝐬𝐢𝐧𝐠 𝐌𝐚𝐬𝐭𝐞𝐫𝐜𝐥𝐚𝐬𝐬 Itar Week American Conference Institute July 14- August 7, 2025 We are thrilled to announce that Kelly McCorkle will be participating as a panelist in the EAR Compliance & Licensing Masterclass + ITAR Week , taking place from July 14 to August 7, 2025! This virtual series is hosted by the American Conference Institute. Join Kelly on July 21, 2025, at 12:00 PM EDT for Module 4: EAR Licensing Requirements: Reducing the Risk of Delays, Denials, and RWAs . This exceptional panel of industry specialists also includes Margaret Francisco, Dane Chambless, LCB, and Adam Krepp. EAR Compliance 𝐖𝐡𝐲 𝐓𝐡𝐢𝐬 𝐌𝐚𝐭𝐭𝐞𝐫𝐬 𝐍𝐨𝐰: With the Trump Administration's America First Trade Policy focused on increasing enforcement and "eliminating loopholes" in the U.S. export controls system, staying current on compliance requirements is more critical than ever. 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, Tomatoes, and Turmoil: Michelle Schulz Unpacks the Trade Confusion on WLW Cincinnati July 14, 2025 700 WLW WLW Radio, Cincinnati Host: Scott Sloan With tensions rising over new U.S. tariff threats—this time hitting Canada and even life-saving pharmaceuticals—international trade attorney Michelle Schulz returned to WLW Radio on July 14, 2025, to clarify what’s happening and what it really means for Americans. The short answer? The situation is messy, and it’s not just about politics or economics—it’s about your grocery bill, your medicine cabinet, and your job. “It’s hard to see a clear strategy,” Schulz said. “What’s being used as a national security measure is actually more of a deal-making tactic—and it’s hurting U.S. companies.” Canada, Copper, and Confusion : Are We Taxing Our Friends? Host Scott Sloan opened by pointing out how strange it is to be punishing Canada—a close ally and major copper supplier—especially after they backed down on a proposed digital tax. Schulz didn’t mince words. “It’s odd timing. We have a free trade agreement with Canada and Mexico, but we’re not sticking to the spirit of those deals,” she explained. Instead, U.S. businesses are bearing the cost. “Our clients are struggling,” Schulz said. “They either raise prices, go out of business, or scramble to source elsewhere. The importers—our own companies—are the ones paying these taxes.” And while the U.S. saw a $27 billion increase in tariff revenue year-over-year, Schulz reminded listeners: “That’s still a drop in the bucket compared to our $37 trillion national debt.” What Happens When Tomatoes—and Pharmaceuticals—Get Taxed? Tariffs may sound abstract, but they show up on your dinner plate and at your pharmacy. Schulz confirmed that prices on essentials like produce and medicine are already rising, and a rumored 200% tariff on pharmaceuticals  could send costs soaring. “People will turn to black markets or unsafe knockoffs if legitimate medications become unaffordable,” she warned. “You could go to the pharmacy and your prescription just isn’t there.” Even medical equipment is affected, thanks to the existing 50% tariffs on steel and aluminum . “We’re risking a lot,” Schulz added, “and we won’t see any benefit for years.” The same logic applies to Trump’s stated goal of bringing drug manufacturing back to the U.S. “Experts say that’ll take five years or more,” said Schulz. “So what do we do in the meantime?” Global Retaliation and Long-Term Risks The fallout won’t be limited to U.S. consumers. Other nations are preparing to retaliate with tariffs of their own. Schulz pointed to the administration’s decision to skip major trade deals—like the Trans-Pacific Partnership—as part of a broader trend of isolation. “If we don’t cooperate, other countries will work together without us. That creates more competition for the U.S. in the long run.” The result? A fractured global economy and missed opportunities. And what about deals we have  struck—like with Vietnam and the UK? Schulz was skeptical: “They’re not official trade agreements. At best, we’re getting slightly better tariff rates in a few places while damaging relations with key partners like the EU, Canada, and Brazil.” Stay up to date on current Tariffs with our Tariff Tracker The Bottom Line for Businesses and Consumers So what’s next? Schulz sees chaos and uncertainty unless the approach to trade policy shifts. “We’ve had clients who were planning to manufacture in the U.S., but now they’ve reversed course and moved operations abroad because of tariff pressure,” she said. “This isn’t the massive reshoring effort we were promised.” Meanwhile, Schulz emphasized, it’s the American consumer who ends up paying more—for groceries, electronics, cars, and even health care. At Schulz Trade Law , we help businesses stay nimble in the face of volatile trade policy. If you're unsure how new tariffs will affect your operations—or your bottom line— contact us  for tailored legal and compliance strategies. WLW Radio, Cincinnati https://700wlw.iheart.com/ + https://www.facebook.com/700wlw @700wlw  + https://www.instagram.com/700wlw/ Host:  Scott Sloan 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.

Importing goods from global markets presents a myriad of challenges. Every business engaged in international trade must navigate barriers that can complicate the process. From tariffs to logistics issues, understanding these challenges is essential for success in the global marketplace. Global import/export for manufactured components Common Import Challenges One of the foremost challenges in importing goods is dealing with customs regulations. Each country has unique rules that dictate what can be imported and under what conditions. In the United States, the customs authority requires that all imports comply with federal laws, which can include tariffs, quotas, and labeling requirements. Failing to meet these criteria can lead to penalties, delays, or even the confiscation of goods. Another significant hurdle is the variability in shipping costs and delivery times. International shipping involves numerous factors, such as fuel prices, port fees, and handling charges. These costs can fluctuate greatly, making it difficult to calculate the total expense for imported goods. A sudden spike in shipping rates can erode profit margins, especially if the increase was not anticipated. Lastly, the risk of damage during transit cannot be overlooked. Goods traveling across vast distances are exposed to potential hazards, including rough handling and extreme weather conditions. Ensuring that items arrive in optimal condition often requires investing in quality packaging and insurance, adding further to overall costs. A busy shipping container port with stacked containers ready for shipment. Exchange Rate Fluctuations Exchange rates significantly impact the cost of importing goods. When a business buys products from another country, conversion rates between currencies can fluctuate wildly. If a company does not hedge against these fluctuations, it may find itself paying much more for imports than initially planned. For example, if a U.S. retailer agrees to pay in Euros for a shipment of electronics, and the Euro strengthens against the dollar before payment is made, the retailer faces a higher cost. This can lead to tough decisions like raising retail prices or absorbing the losses, neither of which is an ideal scenario. To mitigate this risk, businesses can utilize financial instruments, such as forward contracts, to lock in currency rates. This strategy helps provide predictability in budgeting for international purchases, shielding organizations from potentially harmful fluctuations. A close-up view showcasing fluctuating currency exchange rates. What are the Five Top US Imports from China? The relationship between the US and China is integral to global trade, with a hefty share of American imports coming from China. Here are the five top imports: Electronics : Items like smartphones, televisions, and computers dominate the import statistics. Machinery : This category includes a wide range of equipment from industrial machines to home appliances. Furniture : China is a leading exporter of furniture, from simple pieces to complex designs. Clothing and Textiles : Garments from China make up a large portion of apparel imports to the US. Toys : A significant part of the US's toy market is supplied by manufacturing in China. Understanding the specifics of these imports can guide businesses in making informed purchasing decisions and identifying reliable suppliers. Utilizing resources like Matt Savage's insights on china imports can also provide valuable expertise for navigating import challenges. A vibrant marketplace showing various electronic goods available for sale. Tariffs and Trade Policies Tariffs can be one of the biggest obstacles for businesses looking to import goods. Governments impose tariffs to protect domestic industries, but they also raise costs for importers. Whether dealing with permanent tariffs or temporary trade sanctions, businesses must set aside a budget for these additional expenses. Companies need to stay informed about potential changes in trade policies. For example, during tense political climates, governments often impose new tariffs unexpectedly. To minimize exposure to these risks, businesses may consider diversifying their supply chains or establishing relationships with suppliers from multiple countries. Engaging with trade associations can prove beneficial as they often provide timely updates on changes in trade law and tariffs. Staying ahead of industry news can give businesses the competitive edge needed to navigate these complexities. Inventory management and tracking Navigating Logistics and Supply Chain Issues Logistics stands as one of the most challenging aspects of international trade. Coordinating shipments, managing inventory, and ensuring timely delivery requires meticulous planning and effective management. Any disruption, whether from natural disasters, strikes, or logistic bottlenecks, can lead to delays that affect the entire supply chain. One recommendation is to utilize inventory management systems that track product levels in real time. This allows businesses to make informed decisions about ordering and stock levels, reducing the risks associated with unexpected delays. Furthermore, developing strong relationships with logistics providers can improve communication and efficiency in dealing with potential disruptions. It's also essential for businesses to plan for unforeseen scenarios. Developing contingency plans can help ensure that an operation runs smoothly even when faced with challenges. A spacious logistics warehouse filled with organized goods ready for distribution. Quality Control and Assurance Importing goods brings the challenge of ensuring that products meet quality standards. Variable manufacturing processes across different countries can lead to inconsistencies. Quality control inspections should be conducted at manufacturing sites before shipment. This can be crucial for products like electronics, which have strict safety regulations. Businesses should set quality benchmarks to assure compliance. Involving third-party inspection services can also provide an unbiased assessment of product quality. Regular audits and assessments of suppliers can further solidify relationships and ensure products meet predetermined standards. Building Resilience in Importing Strategies To summarize, the challenges in importing goods from global markets are multifaceted. Businesses must address customs regulations, shipping fluctuations, exchange rate variations, tariffs, logistics complications, and quality control processes to ensure seamless operations. Building resilience into importing strategies can greatly aid in overcoming these challenges. One effective approach is to cultivate strong relationships with suppliers, logistics partners, and customs brokers. This can facilitate smoother transactions and communication, leading to increased efficiency. Lastly, businesses can consider investing in technological solutions for inventory management and supply chain analytics. By leveraging technology, companies can make data-driven decisions that strengthen their import strategies. Importing goods is a complex endeavor, but with the right strategies in place, companies can successfully navigate the challenges of the global market. Remember to stay informed and adaptable to ensure ongoing success in your importing activities. 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.

Brewing Trade War? Michelle Schulz Breaks Down the U.S.-EU Tariff Clash July 14, 2025 The Briefing with Steven Scully SiriusXM POTUS Host: Steven Scully The U.S. and European Union may be headed for a full-blown trade war—and the world is watching. On July 14, 2025, Michelle Schulz, founding and managing partner of Schulz Trade Law, joined SiriusXM’s POTUS channel to discuss the mounting tensions over President Trump’s threatened 30% tariff on EU imports. With nearly $2 trillion in annual trade hanging in the balance, Schulz warned that this standoff could have devastating consequences for global markets and American businesses alike. “We’ve been kind of living the high life until now,” Schulz said. “We’ve been drinking French wines, doing business freely with Europe—but that’s about to change.” Escalating Pressure and Global Ripple Effects The proposed tariff hike marks a sharp turn in U.S.-EU relations. According to the EU Trade Commissioner, any tariff above 30% would be a deal-breaker, potentially “wiping out” bilateral trade. Schulz explained that the pressure is mounting not just on European leaders but also on President Trump to strike alternative deals quickly. “When we cannot import from Europe, if it becomes too expensive, then the pressure is on the President to secure deals with other countries,” she noted. That’s already affecting U.S. businesses. Schulz shared that one of her clients recently shifted operations to Europe to avoid impending tariffs—a trend she says could become widespread. “Jobs and services are leaving the U.S. instead of coming back,” she cautioned. “This undercuts the idea of reshoring American industry.” What’s on the Line: Medical Devices, Wine, and Everyday Costs While the average American may not be closely tracking trade policy, the effects will hit close to home. From critical medical supplies to gourmet indulgences like French wine and Italian cheese, prices are set to surge. “We’re already seeing increased costs due to existing 50% steel and aluminum tariffs,” Schulz explained. “Stacking an additional 30% on top will make some goods nearly unaffordable.” For healthcare providers, that could mean tighter budgets. For consumers, the cost of luxury—and even necessity—could rise sharply. “You're looking at paying a lot more,” she said. “It will trickle down to the customers.” Informal Negotiations, Legal Battles, and the Path Forward Adding to the uncertainty is the unorthodox way this dispute is being handled. Unlike formal trade negotiations that take months or years, Schulz pointed out that this process has devolved into little more than letter exchanges. “These are just letters,” she said bluntly. “This isn’t the usual process for the U.S. in any kind of international trade deal.” Meanwhile, legal challenges are unfolding in the background. Cases in the Federal Circuit are questioning the very authority of the President to unilaterally impose such sweeping tariffs. The outcome of these cases could redefine the boundaries of executive power in trade policy. What Businesses Should Do Now Schulz offered a clear message to businesses: don’t wait. With the August 1 deadline looming and retaliatory EU tariffs almost certain, preparation is essential. “Our clients are pivoting—fast,” she said. “They’re exploring every legal and logistical mechanism available to minimize losses. But it’s not looking good.” At Schulz Trade Law , we help companies navigate international trade turbulence with confidence. If your business is grappling with tariff risks or shifting trade rules, now is the time to act. Contact us  for tailored strategies in compliance, mitigation, and global supply chain planning. SiriusXM POTUS  (channel 124) https://www.facebook.com/SiriusXMPolitics/ @SXMPOTUS 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.

Trade Alert: One Big Beautiful Bill – Opportunities and Risks for U.S. Trade and Global Supply Chains July 2, 2025 What is the One Big Beautiful Bill Act (OBBBA)? In July 2025, the U.S. Congress introduced the One Big Beautiful Bill Act (OBBBA) —a sweeping legislative proposal designed to revitalize American manufacturing , support small businesses , and reinforce domestic supply chains . While the bill’s name suggests simplicity and unity, the actual content of the legislation is far-reaching and complex. At its core, OBBBA aims to create long-term incentives for U.S.-based businesses , including: Making the Section 199A deduction permanent  for pass-through entities Expanding estate tax exemptions  to protect family-owned businesses Providing tax credits and deductions  for companies that repatriate manufacturing and distribution operations to U.S. soil Supporters hail the bill as a bold step toward economic nationalism , while critics warn it could disrupt international trade , inflate domestic costs, and create unintended burdens  for smaller import-reliant businesses. Key Benefits of OBBBA: Tax Incentives and Domestic Growth 1. Permanent Section 199A Deduction The OBBBA proposes making the 20% pass-through income deduction  under Section 199A  a permanent fixture of the tax code. This deduction has been a lifeline for LLCs, S-corporations, and sole proprietorships , helping them remain competitive against C-corporations. By securing this deduction long-term, the bill aims to: Boost small business reinvestment , Support domestically-based supply chains , and Encourage reshoring  of manufacturing operations. 2. Enhanced Estate Tax Exemptions Family-owned firms and generational businesses stand to benefit from expanded estate and gift tax exemptions . This change would: Ease succession planning , Preserve long-term family ownership, and Mitigate forced sales of assets to meet tax obligations. This provision is expected to gain support from wholesale distributors , family farms , and multi-generational manufacturing firms . Potential Drawbacks: Importers and Consumers Face New Challenges While OBBBA delivers several pro-business benefits for U.S.-based operations, it also presents notable risks , particularly for importers, small-to-medium enterprises (SMEs), and consumers. 1. Heightened Pressure on Importers The bill complements recent tariff escalations  on imported goods from several foreign nations. While tariffs aim to encourage domestic production, they also raise input costs  for companies dependent on global supply chains. Importers—particularly those in apparel, electronics, automotive parts, and food products —may face: Shrinking margins , Increased compliance costs , and Disrupted supply contracts  with overseas partners. 2. Unequal Impact on SMEs Larger corporations may have the resources to absorb or adjust to higher duties and domestic sourcing costs. However, many SMEs lack the flexibility or capital  to pivot quickly. Without global sourcing, these businesses could struggle with: Higher production costs , Limited supplier networks , and Reduced pricing competitiveness. Ironically, a bill designed to support  small businesses may unintentionally undermine those most dependent on international trade . 3. Consumer Price Implications OBBBA’s protectionist tilt, when paired with broader tariff policy, could lead to: Higher retail prices  for imported goods, Reduced access to budget consumer goods , and Strained purchasing power , particularly for low- to middle-income households . Household staples, clothing, electronics, and imported foods could all see price increases if businesses pass along the higher costs of compliance, labor, and materials. Trade Policy at a Crossroads: Nationalism vs. Global Integration The introduction of the One Big Beautiful Bill Act places the U.S. at a critical decision point in its trade and economic policy. On one hand, OBBBA signals a commitment to rebuilding American industry , enhancing self-sufficiency , and minimizing reliance on foreign nations—especially in strategic sectors  like pharmaceuticals, semiconductors, and heavy manufacturing. On the other hand, it risks decoupling the U.S. from global trade ecosystems  that have historically delivered cost savings, innovation, and supply chain efficiency. This tension echoes a broader trend in global economics: the shift from globalization to regionalization , as nations reassess the security and stability of their supply chains. Supply Chain Implications: Time to Rethink Strategy For businesses engaged in cross-border trade, the OBBBA is not just a tax bill—it’s a trigger for proactive supply chain review . Here’s what companies should begin evaluating now: 1. Cost-Benefit of Domestic Sourcing Assess whether shifting production or assembly operations to the U.S. aligns with long-term tax advantages offered under OBBBA. This analysis should weigh: Upfront transition costs , Tax savings , and Ongoing labor, infrastructure, and logistics implications. 2. Tariff Exposure Modeling Businesses reliant on imports should conduct a tariff exposure audit  to understand how OBBBA—combined with existing or future tariff regimes—will affect profitability. 3. Supplier Diversification Consider strategies to diversify or regionalize suppliers , minimizing dependence on any one country or port of entry. 4. Scenario Planning and Cash Flow Impact Prepare financial models for best-case and worst-case supply chain outcomes under the bill, including: Tariff increases , Delays in tax relief , and Changing compliance requirements. Compliance, Tax & Trade: Schulz Trade Law Is Here to Help At Schulz Trade Law PLLC , we specialize in the intersection of international trade law, customs compliance, and tax-related impacts on cross-border business . Our advisory services include: Customs & import strategy reviews Tariff mitigation and sourcing optimization Country-of-origin and classification support Regulatory compliance under evolving U.S. trade legislation Strategic planning for reshoring, FDI, and supply realignment We understand that legislation like OBBBA doesn’t just affect spreadsheets—it affects business models, market positioning, and long-term viability . Whether you're a family-owned manufacturer, a midsize importer, or a global enterprise, we provide tailored, timely guidance  to help you adapt and thrive. At Schulz Trade Law PLLC , we are closely monitoring these developments and providing clients with strategic guidance to mitigate risks, evaluate tariff exposure, and adapt compliance strategies. Our team is ready to deliver timely, tailored support to navigate these changes. Contact us today to ensure your business is prepared for the evolving trade landscape. About Schulz Trade Law 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.

Trade issues can arise unexpectedly, affecting businesses of all sizes. Sometimes, the complexity of international regulations and laws can be overwhelming. Knowing when to seek legal assistance is crucial for any business involved in trade. So, how do you determine the right moment to contact a legal professional? This blog post will explore various scenarios in which seeking help from a trade lawyer becomes necessary, ensuring your business navigates the murky waters of trade law effectively. Understanding Trade Regulations and Legal Complexities International trade is governed by numerous regulations that can vary significantly by country. In recent years, these regulations have become even more complex due to increasing globalization and changing political landscapes. For example, businesses exporting goods can run into various issues, such as: Tariff classifications Import duties Trade agreements According to the World Trade Organization, an estimated 80% of world trade is facilitated by international trade agreements. This means it's essential for businesses to comply with these frameworks or risk severe penalties. Trade regulations are complex and can affect business operations. Understanding these challenges is the first step in determining whether you need to consult with an experienced trade lawyer. They can help you navigate the legal complexities, ensuring compliance with both domestic and international laws. Signs You Need Legal Assistance from a Trade Lawyer Several indicators can suggest it's time to consult with a trade lawyer. Pay attention to the following signs: Receiving a Trade Violation Notice : If you receive a notice of violation from customs or another regulatory body, it’s crucial to seek legal help. Such notices can lead to hefty fines, delays, and even more severe legal consequences. Challenges with Import or Export Regulations : Often, businesses face confusion regarding specific import or export restrictions. An experienced trade lawyer can provide clarity and guide you through the necessary compliance measures. Disputes with Business Partners : If you find yourself in a disagreement with an overseas supplier or distributor, legal advice can help in resolving the issues without escalating them further. Navigating Trade Remedies : If your business is affected by unfair trade practices, such as dumping or subsidization by foreign competitors, it may be beneficial to consult with a trade lawyer to explore available trade remedies. Intellectual Property Concerns : If you are exporting products that include patented technology or trademarks, it’s essential to ensure you're not infringing on any intellectual property rights. Navigating trade regulations often leads to complications with imports and exports. How a Trade Lawyer Can Assist Your Business Engaging a trade lawyer can not only prevent issues but also help you resolve ongoing complications efficiently. Here’s how they can be of assistance: 1. Compliance Counseling Trade lawyers specialize in compliance matters. They can evaluate your business practices and help ensure you meet regulatory requirements. They may conduct audits of your trade operations to identify areas of potential risk. 2. Dispute Resolution In the event of a dispute, a trade lawyer can represent your interests during negotiations or mediations. Their expertise enables them to advocate effectively for your business, whether it involves customs disputes, contractual disagreements, or regulatory challenges. 3. Representation in Administrative Proceedings If your business faces administrative proceedings due to alleged violations, a trade lawyer can represent you in front of regulatory bodies. They will work to protect your rights and defend your interests throughout the legal process. 4. Drafting and Reviewing Contracts When entering into contracts with foreign partners, a trade lawyer can provide invaluable assistance. They can draft and review contracts to ensure they are enforceable and comply with international trade laws. 5. Keeping You Informed on Legal Changes Regulations can change frequently. A good trade lawyer will keep you informed about any relevant updates in trade laws that may impact your business. This can help prevent unexpected legal challenges in the future. Consulting an experienced trade lawyer helps navigate legal complexities effectively. Preparing for Your Initial Consultation Before meeting with a trade lawyer, it’s important to come prepared. Here are some steps to take: Gather Relevant Documents : Collect documentation related to your trade issues, such as contracts, invoices, and notices of violation. This will give the lawyer a clear understanding of your situation. Identify Key Questions : Write down any questions or concerns you have. This ensures that you cover all necessary topics during your meeting. Establish Your Goals : Be clear about what you want to achieve. Whether it’s understanding compliance requirements or resolving a dispute, communicating your objectives will help your lawyer tailor their approach. Discuss Fees and Costs : It's essential to understand the cost of legal services upfront. Discussing fees during the initial consultation helps avoid surprises later on. Real-World Scenarios Requiring Legal Intervention Real-life examples can help illustrate when a trade lawyer's expertise can be invaluable: Scenario 1 : A small furniture manufacturer exporting to Europe encounters unexpected tariffs due to a misclassification of their products. The business suffers losses and seeks help to rectify the issue and regain their market position. Scenario 2 : A tech startup partners with a foreign supplier, only to discover that their partner is using patented technology without permission. The startup seeks legal help to address the infringement and protect their intellectual property. Scenario 3 : A major retailer faces an investigation for violating import regulations related to labor standards. They engage a trade lawyer to assist in navigating the investigation and mitigating potential penalties. In each of these scenarios, seeking legal assistance leads to effective solutions that preserve business interests and ensure compliance with trade regulations. Taking the First Steps Toward Legal Help If you find yourself facing any of the challenges discussed, it is time to reach out for help. When you consult with an international trade lawyer , they can provide tailored advice to fit your business's unique circumstances. Don't wait for issues to escalate; proactive engagement with a legal expert can save time, money, and stress in the long run. In summary, knowing when to seek legal help for trade issues is vital for any business engaged in the global marketplace. Through proper guidance, you can navigate the complexities of international trade smoothly, allowing your business to thrive. Resource Library Learn more about Trade Law. We have a series of articles highlighting the key components of international trade and compliance. Resources Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.

Trade Alert: Trump Extends Tariff Suspension — What It Means for Importers, Manufacturers, and Supply Chains July 9, 2025 Breaking Update: Tariff Suspension Extended Through August 1 On July 7, 2025 , President Donald Trump issued a new Executive Order titled: “Extending the Modification of Reciprocal Tariff Rates.” This directive extends the suspension  of specific reciprocal tariffs  (originally set to expire on July 9) through August 1, 2025 —providing a short-term reprieve for many U.S. importers, manufacturers, and distributors. What’s Included in the Suspension: This order temporarily lifts duties under the following tariff provisions: HTSUS headings 9903.01.43 through 9903.01.62 HTSUS headings 9903.01.64 through 9903.01.76 U.S. Note 2 to Chapter 99, Subsection III , including Subdivisions (v)(xiii)(1)–(9) and (11)–(57) This applies to goods entered for consumption or withdrawn from a warehouse  during the July 9–August 1, 2025  window. Notably, tariffs on Chinese-origin goods remain in effect , maintaining pressure on ongoing U.S.-China trade negotiations. What the Suspension Means in Practice This temporary pause  in certain reciprocal tariffs is not a rollback , but rather a strategic delay —part of the administration’s ongoing effort to leverage tariffs as a negotiation tool . For many businesses, this suspension represents: A financial window of opportunity  to accelerate imports or complete key deliveries. A chance to adjust sourcing or pricing models  before duties are potentially reinstated. A compliance challenge , requiring careful tracking of entry dates and HTSUS classifications. The U.S. government is signaling that this window could close quickly —or potentially be extended or narrowed —depending on global responses. “The Executive Order also includes language allowing President Trump to further adjust the tariff schedule, potentially reducing or narrowing the duties.” Strategic Purpose: Negotiation Leverage The flexibility written into this Executive Order is designed to incentivize foreign governments  to engage in or maintain bilateral trade negotiations  with the United States. By holding off on tariffs temporarily, the administration sends a clear signal: progress at the negotiating table can lead to economic rewards —while inaction may result in a tariff snapback. For countries other than China, the message is clear: Stay engaged or face renewed economic pressure. Conclude trade agreements, or lose preferential treatment. For businesses, this “pause” must not be confused with permanence. The current tariff climate remains volatile and subject to presidential discretion . What Should Importers and Manufacturers Do Now? 1. Audit Product Classifications Review whether your products fall under the suspended tariff headings (HTSUS 9903.01.43–.76 and related notes). Proper classification is essential to ensure eligibility  for the temporary suspension. 2. Review Entry Dates Goods must enter U.S. commerce between July 9 and August 1  to benefit from the suspension. Timing is critical. Businesses should: Coordinate logistics  to take advantage of the duty-free window. Work closely with brokers and forwarders to document entry compliance . Evaluate whether delayed shipments may incur duties if the suspension expires. 3. Model Tariff Exposure Scenarios With reinstatement likely after August 1 (or possibly sooner if the order is amended), companies should prepare for a range of outcomes : Scenario Impact Tariff suspension extended Temporary relief continues Tariffs reinstated in full Increased landed costs Tariffs narrowed to select goods/countries Strategic sourcing advantages possible Modeling landed cost exposure , inventory strategies, and customer pricing may help absorb future shocks. 4. Monitor Country-Specific Risks With China excluded  from the suspension, importers with China-heavy supply chains  must continue operating under higher-duty regimes. Companies sourcing from other nations should track: Progress in bilateral trade negotiations , Presidential communications and executive actions, and Updates to tariff schedules or Federal Register notices . Supply Chain & Market Implications For global businesses, this Executive Order highlights the need to balance agility with compliance . The risk of sudden tariff changes is no longer theoretical—it is a policy instrument used in real-time  to shape international relationships. Key Implications: Supply Chain Flexibility: Businesses with diversified sourcing may pivot to take advantage of temporary tariff relief. Those heavily reliant on countries not included in the suspension may need to re-evaluate risk . Pricing Strategy: With landed costs in flux, firms may hesitate to lock in pricing contracts or long-term sourcing agreements. Greater volatility means more margin planning . Compliance Pressure: Even a short-term change in tariff status requires precise customs documentation . Businesses must align entry records, HTS classifications, and shipment timing to avoid penalties or lost benefits. Legal Insight: Enforcement Is Still in Effect Even during this suspension, U.S. Customs and Border Protection (CBP)  continues to enforce: Country-of-origin labeling , Valuation accuracy , and Duty payment accuracy . Tariff classification mistakes can result in: Monetary penalties , Audits , or Loss of eligibility  for suspended duty treatment. If you're unsure whether your goods qualify for the suspended tariff window, consult legal counsel and a licensed customs broker. Schulz Trade Law Is Here to Guide You At Schulz Trade Law PLLC , we actively monitor developments in U.S. tariff policy, Executive Orders, and trade negotiations. Our team advises importers, exporters, and manufacturers on how to: Minimize tariff risk  during uncertain trade climates, Classify goods accurately  under shifting HTS codes, Plan shipments  for maximum tariff advantage, and Prepare contingency strategies  in case of reinstatement. Our services are customized, responsive, and grounded in real-time updates—because in 2025, every tariff decision counts . At Schulz Trade Law PLLC , we are closely monitoring these developments and providing clients with strategic guidance to mitigate risks, evaluate tariff exposure, and adapt compliance strategies. Our team is ready to deliver timely, tailored support to navigate these changes. Contact us today to ensure your business is prepared for the evolving trade landscape. About Schulz Trade Law 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.

Trade Alert: U.S.-Vietnam Trade Deal Announced Key Impacts and What Businesses Need to Know July 8, 2025 A Major Shift in U.S.-Vietnam Trade Relations On July 2, 2025, President Donald Trump announced via Truth Social  that the United States has reached a new trade agreement with Vietnam. While concise, the announcement included three significant components: A 20% tariff  will now apply to all Vietnamese-origin goods imported into the U.S. A 40% tariff  will apply to goods transshipped through Vietnam  from third-party countries. The U.S. will gain full access to Vietnamese markets , including zero tariffs on American exports . While further implementation details are pending, this announcement represents a dramatic policy shift  from the previously enforced 46% reciprocal tariff  on Vietnamese goods. Moreover, the new provisions are clearly aimed at deterring transshipment schemes , a growing concern for U.S. regulators as companies seek to circumvent tariffs via Vietnam. U.S.-Vietnam What the U.S.-Vietnam Deal Signals This deal underscores a recalibration of U.S. trade policy in Southeast Asia, where Vietnam has played a complex role. As China-based manufacturing has slowed or relocated, Vietnam has emerged as a strategic supply chain hub —a shift that the U.S. both benefits from and views with caution. By applying a reduced 20% tariff on Vietnamese imports , the U.S. is signaling a willingness to engage with Vietnam more constructively . However, the 40% transshipment tariff signals continued vigilance against tariff evasion , especially where Chinese goods are funneled through Vietnam and re-labeled to avoid existing tariffs. Meanwhile, the agreement’s most favorable provision—the elimination of tariffs on U.S. exports to Vietnam —marks a potentially significant win for American agriculture, machinery, and high-tech sectors . The deal could pave the way for more predictable bilateral trade and enhanced U.S. foreign direct investment in Vietnam. Comparing Old vs. New Tariff Terms Prior to this agreement, Vietnamese-origin goods faced a 46% reciprocal tariff , a holdover from earlier trade enforcement actions. For many companies, this rate created a cost burden that narrowed profit margins and discouraged sourcing from Vietnam. U.S.-Vietnam Under the new structure: Product Origin Previous Tariff New Tariff (July 2025) Vietnamese-origin goods 46% 20% Transshipped goods (via Vietnam) Varies 40% U.S. exports to Vietnam Varies 0% (duty-free) This reduction to 20% on Vietnamese goods improves predictability , but it still leaves importers with significant cost calculations. Companies need to evaluate whether savings from Vietnamese sourcing offset the still-steep tariff rates. Transshipment Crackdown: 40% Tariff Explained One of the most consequential aspects of the agreement is the 40% tariff on goods transshipped through Vietnam from other countries . This measure is designed to: Curtail “tariff engineering” , where goods are lightly modified or relabeled in Vietnam to avoid tariffs meant for other origin countries (especially China), Ensure the integrity of country-of-origin declarations , and Protect legitimate Vietnamese manufacturers  from reputational harm. This provision may impact importers using Vietnamese supply chains as routing points. Companies must now carefully audit their supply chains  to ensure that goods labeled as Vietnamese genuinely originate there. Failure to comply could result in hefty duties , audits by U.S. Customs and Border Protection (CBP), and penalties under false origin claims . Sector-Specific Impacts of U.S.-Vietnam Trade Deal 1. Manufacturing & Electronics Vietnam is a global electronics assembly hub. For firms sourcing components such as semiconductors, circuit boards, or smart devices, the 20% tariff will be a cost consideration —but not necessarily a dealbreaker. The zero-tariff access for U.S. goods, however, opens the door for U.S.-made equipment and components to enter Vietnam more competitively . 2. Agriculture & Food Exports For U.S. farmers and food producers, the tariff-free access to Vietnam is highly favorable. Key exports like soybeans, poultry, beef, and corn  stand to gain significant market share in Vietnam's growing consumer economy. Trade volume may increase as prices drop and logistical hurdles are eased. 3. Automotive & Machinery U.S. machinery exports—especially precision tools, heavy equipment, and auto components —may now expand in Vietnam. Meanwhile, American automakers sourcing parts from Vietnamese factories must recalibrate costs with the new 20% import tariff in mind. Foreign Direct Investment (FDI) in Vietnam Vietnam has long attracted U.S. FDI  due to its political stability, lower labor costs, and growing infrastructure. This agreement further strengthens that relationship by offering increased market access and clearer tariff expectations . For U.S. companies operating manufacturing plants or logistics hubs in Vietnam, this agreement offers the potential for: Lower export costs  for U.S. goods, Reduced risk of supply chain penalties , and A more stable investment climate  under U.S.-Vietnam cooperation. However, companies must remain proactive in documenting product origin  and complying with enhanced transshipment monitoring protocols. Next Steps for Businesses The deal is still new, and implementation details may follow in the coming weeks . Businesses should take the following actions now: Review Country of Origin Protocols Ensure documentation is accurate and that Vietnamese labeling reflects actual origin. Audit Supply Chains Identify potential transshipment risks and restructure sourcing to avoid triggering the 40% tariff. Update Pricing Strategies Factor the new 20% tariff into cost models for Vietnamese-origin goods. Explore Export Opportunities to Vietnam U.S. exporters should consider how the zero-tariff access improves competitiveness in Vietnamese markets. Monitor Implementation Dates Track official notices from USTR and CBP regarding effective dates and HS code-level changes. At Schulz Trade Law PLLC , we are closely monitoring these developments and providing clients with strategic guidance to mitigate risks, evaluate tariff exposure, and adapt compliance strategies. Our team is ready to deliver timely, tailored support to navigate these changes. Contact us today to ensure your business is prepared for the evolving trade landscape. About Schulz Trade Law 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.