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Supreme Court Decision Looms: Billions in Tariff Refunds—and What Happens Next Michelle Schulz explains what’s at stake in the Supreme Court’s pending tariff ruling and how refunds could affect prices. In a follow-up appearance on KXYL Radio , Michelle Schulz, founder and managing partner of Schulz Trade Law , discussed the Supreme Court’s expected ruling on the president’s global “Liberation Day” tariffs. With baseline tariffs affecting nearly every imported product—and billions of dollars already collected—the Court’s decision could trigger widespread refunds, price shifts, and yet another phase of trade-policy uncertainty. January 12, 2026 KXYL Radio Brownwood/Coleman, TX What’s at Stake in the Supreme Court Ruling At the center of the case are the so-called Liberation Day tariffs—baseline 10% tariffs applied broadly to imports from almost every country. “There is a lot at stake… it looks like billions of dollars at stake here for us importers.”  Michelle explained that if the Supreme Court rules in favor of importers, those who paid these tariffs would be entitled to refunds. Because the tariffs apply so broadly, the financial implications extend across nearly every sector of the economy. The Rush to Be First in Line for Refunds Anticipating a favorable ruling, major importers—including Costco—have already filed lawsuits to protect their position in what could become a massive refund process. “A lot of them are saying, ‘I want a refund, and I want to be first in line.’”  Michelle noted that refunds will likely be processed electronically, requiring companies to have accurate import data ready to submit. Even if refunds are ordered immediately, however, the real-world process may be slow. “The refunds should go into effect immediately, but the implementation will take a while… it could be months, if not years.”  What Refunds Could Mean for Consumers For consumers, the outcome matters because current tariffs are directly inflating retail prices. “We have increased tariffs on pretty much anything you might buy at a store like Costco… increasing prices up to 17% on average.”  If importers receive refunds, Michelle expects price relief to follow—at least for goods affected by the challenged tariffs. “If Costco wins, then I believe they will be bringing their prices back down.”  Why Some Tariffs Will Stay No Matter What Not all tariffs are part of the Supreme Court case. Michelle emphasized that sector-specific tariffs—such as those on steel, aluminum, lumber, furniture, and copper—are imposed under different legal authorities and will remain in place regardless of the ruling. “Those sector-specific tariffs are going to stay in place… they’re under a completely different set of rules.”  Even if the Court strikes down the baseline tariffs, the president retains other statutory tools to impose duties, including national security investigations and unfair trade practice laws. “Yes, the other statutes… will all still be available to the President.”  What Comes Next: Executive Orders and New Investigations Michelle warned that trade policy has become increasingly fluid, with frequent executive orders and agency notices replacing slower, more formal processes. “We’re seeing change all the time, and sometimes it’s not as formal.” She highlighted semiconductors as a key area to watch, noting ongoing investigations and growing U.S. manufacturing investment—particularly in Texas—which could lead to new tariffs under national security frameworks. Whether tariffs are refunded, upheld, or reimposed under new authority, uncertainty remains the defining feature of today’s trade environment. Schulz Trade Law helps importers prepare for refunds, navigate executive-order changes, and ensure tariff compliance in real time. Trade on, but trade informed! Subscribe  to Schulz Trade Law for more updates.

Supreme Court Weighs Tariff Authority: What a Ruling Could Mean for Importers Michelle Schulz explains the legal limits of presidential tariff power and what businesses should prepare for now. On This Morning with Gordon Deal , Michelle Schulz , founder and managing partner of Schulz Trade Law, joined the program as the U.S. Supreme Court prepared to issue a potential ruling on the legality of President Trump’s global tariffs. At the center of the case is a fundamental question: can the president impose sweeping tariffs unilaterally under emergency powers, or does that authority rest with Congress? Michelle outlined the legal stakes, possible outcomes, and why importers should focus on what they can control amid uncertainty January 9, 2026 This Morning with Gordon Deal Host: Gordon Deal What the Supreme Court Is Really Deciding Michelle explained that the case hinges on the president’s use of the International Emergency Economic Powers Act (IEEPA), a statute traditionally used for export controls and national security—not taxation. “The main question is whether the President has the authority to impose tariffs unilaterally, without Congress, in an emergency situation—and whether this is actually an emergency.”  While the administration argues that trade deficits qualify as an emergency, Michelle noted that the Supreme Court has expressed skepticism, questioning whether this interpretation grants the executive branch power that cannot be meaningfully restrained. “It was giving the President power that we can’t get back… and we should not authorize it.”   What Happens If the President Wins —or Loses If the Court sides with the administration, Michelle warned that importers hoping for refunds will be disappointed. “If the president wins, then all the folks who have been clamoring to prepare to get refunds will be out of luck.”  If the president loses, however, the implications are significant. U.S. Customs and Border Protection would be required to issue refunds for unlawfully collected duties—an enormous administrative task. “If the president loses, then Customs will have to issue refunds… you’re going to see a lot of people coming to Customs requesting refunds.”  Michelle noted that Customs has already begun updating its automated systems, potentially in anticipation of large-scale refund processing. Why a Loss Wouldn’t End Tariffs Altogether Even if the Supreme Court strikes down the IEEPA-based tariffs, Michelle cautioned that this would not mark the end of tariffs as a policy tool. The administration retains multiple alternative authorities. “He has other options, and he’s using those options already.” These include tariffs imposed under national security statutes (such as steel and aluminum) and unfair trade practice provisions like Section 301. New investigations—particularly into sectors such as semiconductors—could quickly lead to additional duties under different legal frameworks. What Importers Should Be Doing Right Now With outcomes uncertain, Michelle emphasized focusing on fundamentals that are fully within an importer’s control. “Make sure you have everything correct… getting your value and your tariff code correct is something you can be working on now to make sure you’re not overpaying by accident.”  Accurate classification, valuation, and compliance can prevent unnecessary overpayment regardless of how the Court rules. Whether tariffs are upheld, overturned, or reimposed under new authority, trade compliance mistakes can be costly. Schulz Trade Law helps importers navigate uncertainty, prepare for potential refunds, and ensure duties are calculated correctly in a rapidly changing trade environment. Contact us to learn how we can help. Trade on, but trade informed! Subscribe  to Schulz Trade Law for more updates.

In today's global marketplace, products often cross multiple borders before reaching consumers. This complexity makes understanding the legal aspects of origin crucial for businesses, regulators, and consumers alike. The origin of a product can affect tariffs, trade agreements, labeling requirements, and even consumer trust. This article explores the key legal considerations surrounding the origin of goods, providing practical insights and examples to help you navigate this intricate area. Schulz Trade Law offers Country of Origin services. Legal Aspects of Origin : Why They Matter The legal aspects of origin determine how a product is classified under international trade laws. This classification impacts duties, taxes, and compliance with trade agreements. For example, a product labeled as "Made in Country A" might benefit from lower tariffs under a free trade agreement between Country A and the importing country. Conversely, incorrect origin labeling can lead to penalties, fines, or even seizure of goods. Understanding these legal aspects involves several factors: Rules of Origin (RoO):   These are the criteria used to define where a product was made. They can be based on where the product was wholly obtained or where a substantial transformation occurred. Customs Compliance:   Customs authorities require accurate origin information to apply the correct tariffs and enforce trade policies. Labeling Requirements:   Many countries have strict rules about how the origin must be displayed on packaging and marketing materials. Trade Agreements:   Preferential trade agreements often include specific origin rules to qualify for reduced tariffs. Businesses must stay informed about these legal frameworks to avoid costly mistakes and to leverage trade benefits effectively. Customs officer checking product origin labels Key Legal Considerations in Determining Origin Determining the origin of a product is not always straightforward. Legal frameworks vary by country and product type, but some common principles apply: Wholly Obtained Products: These are products entirely produced or extracted in one country, such as minerals, agricultural products, or live animals. Substantial Transformation: If a product is made from materials sourced in multiple countries, the origin is usually the country where the last substantial transformation occurred. This means the place where the product underwent a significant manufacturing process that changed its nature or character. Value-Added Criteria: Some rules require that a certain percentage of the product's value must be added in the country claiming origin. Specific Processing Rules: Certain products have unique rules, such as textiles or electronics, which specify particular manufacturing steps that determine origin. For businesses, it is essential to document the production process and maintain records that prove compliance with these rules. Failure to do so can result in legal disputes or loss of preferential tariff treatment. What is an example of country of origin? Example: Consider a pair of shoes assembled in Country B using leather sourced from Country A and rubber soles from Country C . The question arises: which country is the origin? If the assembly in Country B significantly changes the product (e.g., cutting, stitching, and finishing the shoes), Country B may be considered the origin under the substantial transformation rule. If the value added in Country B meets the required threshold, this further supports Country B as the origin. However, if the rules specify that the origin must be where the leather was tanned ( Country A ) or where the soles were manufactured ( Country C ), the determination could differ. This example highlights the importance of understanding specific legal rules and consulting trade experts to ensure accurate origin claims. Shoe assembly line showing production process Practical Recommendations for Businesses To navigate the legal aspects of origin effectively, businesses should adopt the following best practices: Conduct a Thorough Origin Analysis: Review the production process and materials to determine the correct origin under applicable rules. Maintain Detailed Documentation: Keep records of sourcing, manufacturing steps, and value added to support origin claims. Stay Updated on Trade Agreements: Monitor changes in trade policies and agreements that may affect origin rules. Train Staff and Partners: Ensure that employees and supply chain partners understand origin requirements and compliance procedures. Use Legal Expertise: Consult with trade law professionals to interpret complex rules and resolve disputes. By implementing these steps, companies can reduce risks, optimize tariff benefits, and build trust with customers through transparent labeling. The Impact of Origin on Consumer Perception and Market Access Beyond legal compliance, the origin of a product i nfluences consumer behavior and market access . Many consumers associate certain countries with quality, craftsmanship, or ethical standards. For example, " Made in Italy " might evoke luxury and style, while " Made in Germany " may suggest engineering excellence. From a market access perspective, some countries restrict imports based on origin for political or economic reasons. Sanctions, embargoes, or anti-dumping measures often target products from specific countries. Accurate origin determination helps businesses avoid prohibited markets and comply with international sanctions. Moreover, origin labeling can be a marketing tool. Transparent and truthful origin information can enhance brand reputation and customer loyalty. Navigating Disputes and Enforcement Disputes over origin claims can arise between importers, exporters, and customs authorities. Common issues include: Incorrect or misleading origin labels. Disagreements over the substantial transformation criteria. Challenges in proving compliance with value-added requirements. Enforcement agencies may conduct audits, request documentation, or impose penalties for violations. To mitigate these risks, companies should: Perform internal audits of origin compliance. Respond promptly to customs inquiries. Engage legal counsel when disputes arise. Consider alternative dispute resolution mechanisms. Understanding the enforcement landscape helps businesses prepare for potential challenges and protect their interests. Final Thoughts on Legal Aspects of Origin The legal aspects of origin are a critical component of international trade. They affect tariffs, compliance, consumer trust, and market access. By understanding the rules and maintaining rigorous documentation, businesses can navigate this complex area with confidence. For more detailed information on the country of origin and its legal implications, consulting specialized resources and legal experts is highly recommended. Staying informed and proactive ensures that your business remains competitive and compliant in the global marketplace. 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.

Why Prices Keep Rising: Tariffs, Stacked Costs, and the New Reality for Consumers Michelle Schulz explains how baseline tariffs and stacked duties are driving higher prices—from holiday gifts to cars. In a recent interview on KMOX Radio in St. Louis, Michelle Schulz , founder and managing partner of Schulz Trade Law , joined hosts to explain why consumers are paying more across nearly every product category. From holiday shopping to electronics and automobiles, Michelle outlined how broad-based tariffs —many of which apply regardless of country of origin— are quietly reshaping prices and leaving consumers with fewer goods for more money. December 23, 2025 KMOX Radio St. Louis Hosts: The Chris and Amy Show Baseline Tariffs and Why Everything Costs More Michelle explained that today’s price increases aren’t limited to a handful of imports or countries. Instead, nearly all imported goods are now subject to a baseline tariff—often starting at 10%—with no minimum value threshold. “Imported items have really resulted in hyped-up prices… there’s no minimum, so it doesn’t matter what you’re buying—it might be subject to a tariff.”  Even when individual tariffs are paused or adjusted, importers must price goods based on risk and uncertainty. As a result, consumers see higher prices regardless of whether a specific tariff is currently active. Which Products Are Being Hit the Hardest Certain categories have seen especially sharp increases. Kitchen goods, electronics, clothing, and shoes are among the most affected, with tariffs stacking on top of one another depending on product components and materials. “Kitchen goods are up about 38%, electronics about 34%, and clothes and shoes are going up at least 20%.”  Michelle noted that electronics often face multiple layers of duties—base tariffs plus additional tariffs on metals like aluminum, steel, and copper—compounding costs long before products reach store shelves. These increases are already showing up in major consumer purchases such as gaming consoles, appliances, and household electronics. Confusion, Classification, and Why Prices Rarely Come Back Down One challenge for both businesses and consumers is that tariffs are rarely itemized at checkout. Many companies fold tariff costs into pricing without disclosing them, making it difficult to track what’s driving increases. “There are different tariffs by product… every product is categorized by a Harmonized Tariff code, and tariffs can stack upon each other.”  Michelle also addressed whether prices are likely to fall. While some consumers hope reduced demand will force price corrections, she sees a different pattern emerging. “People are spending more, but they’re just coming away with less.”  Meaningful relief, she noted, would likely require court intervention—specifically a ruling by the Supreme Court of the United States on the legality of the broad emergency-based tariffs currently in place. Beyond Retail: Cars, Equipment, and Long-Term Impact Tariffs aren’t just affecting consumer goods. Michelle highlighted rising vehicle prices, increased scrutiny at customs, and reduced demand for new agricultural and industrial equipment. “Tariffs are directly impacting the price of cars… people don’t want the new ones—they want the old, cheaper ones.”  As costs rise, businesses and consumers alike are delaying purchases, repairing older equipment, and adjusting expectations—signals of longer-term economic distortion rather than short-term price spikes. Tariffs are no longer an abstract trade issue —they affect pricing, purchasing power, and business planning across the economy. If your company imports goods and needs clarity on tariff exposure, classification, or cost-reduction strategies, Schulz Trade Law can help you navigate today’s trade landscape with precision and foresight. 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.

When dealing with international trade, imports, exports, or product labeling, understanding the origin country legal definition is crucial. This concept affects tariffs, customs duties, consumer protection, and compliance with trade agreements. In this article, we will explore the legal framework surrounding the origin country, clarify its meaning, and provide practical examples and recommendations to help businesses and individuals navigate this complex area. Schulz Trade Law offers Country of Origin services. What Does Origin Country Legal Definition Mean? The origin country legal definition refers to the official criteria used to determine the country where a product was manufactured, produced, or substantially transformed. This definition is essential for customs authorities, importers, exporters, and regulators to apply the correct tariffs, enforce trade policies, and ensure transparency for consumers. Legal definitions of origin vary depending on the jurisdiction and the specific trade agreement or regulation involved. For example, the World Trade Organization (WTO) provides general guidelines, but individual countries may have their own rules. The origin can be based on: The place where the product was wholly obtained or produced. The country where the last substantial transformation occurred. Specific value-added thresholds or manufacturing processes. Understanding these criteria helps businesses avoid penalties, reduce costs, and maintain compliance with international trade laws. Key Legal Considerations in Determining Origin Country Several legal aspects influence how the origin country is determined and applied in practice. These include: 1. Tariff Classification and Duties The origin country affects the tariffs imposed on imported goods. Products from countries with free trade agreements (FTAs) may benefit from reduced or zero tariffs. Conversely, goods from countries without such agreements might face higher duties. 2. Labeling and Consumer Protection Many countries require products to be labeled with their origin to inform consumers. Mislabeling can lead to fines, recalls, or damage to brand reputation. 3. Trade Agreements and Preferential Treatment Trade agreements often include specific rules of origin to qualify for preferential treatment. These rules define how much of a product must be made in a particular country to benefit from reduced tariffs. 4. Anti-Dumping and Countervailing Measures Origin determination is critical in applying anti-dumping duties or countervailing measures to protect domestic industries from unfair competition. 5. Intellectual Property and Geographical Indications Certain products, like wines or cheeses, have protected geographical indications tied to their origin, which must be respected legally. Understanding these legal considerations helps businesses plan their supply chains and marketing strategies effectively. What is an example of country of origin ? To illustrate, consider a pair of shoes assembled in Vietnam using leather sourced from Italy and rubber soles made in China. Determining the origin country depends on the applicable legal rules: If the last substantial transformation is assembly, Vietnam may be considered the origin. If the value added in Vietnam is minimal, the origin might be Italy or China, depending on the component's significance. Under certain trade agreements, specific manufacturing steps or value thresholds must be met for Vietnam to qualify as the origin. This example shows how complex origin determination can be and why understanding the legal definition is vital for compliance and cost management. Practical Recommendations for Businesses Navigating the legal aspects of origin country requires careful attention and proactive measures. Here are some actionable tips: Consult Legal Experts Engage trade law specialists to interpret origin rules relevant to your products and markets. Maintain Detailed Documentation Keep records of manufacturing processes, sourcing, and value added to support origin claims. Understand Trade Agreements Study the rules of origin in applicable FTAs to maximize tariff benefits. Train Staff Educate your supply chain and compliance teams on origin requirements and labeling standards. Use Technology Implement software solutions to track product components and origin data efficiently. Regularly Review Compliance Monitor changes in trade laws and update your practices accordingly. By following these steps, businesses can reduce risks, optimize costs, and build trust with customers and regulators. Navigating the Complexities of Country of Origin in International Trade The concept of country of origin is more than just a label on a product. It carries significant legal weight that impacts tariffs, trade policies, and consumer rights. Understanding the origin country legal definition helps businesses comply with regulations, benefit from trade agreements, and avoid costly disputes. Whether you are importing electronics, exporting textiles, or labeling food products, knowing how to determine and document the origin country is essential. Stay informed, seek expert advice, and implement robust compliance systems to navigate this complex but critical aspect of global commerce successfully. 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.

Tariff Refund Lawsuits, Supreme Court Uncertainty, and What Importers Should Do Now Michelle Schulz explains the latest tariff litigation and why timing matters for billions in potential refunds. In a recent interview on KXYL Radio in Brownwood–Coleman, Texas, Michelle Schulz , founder and managing partner of Schulz Trade Law , unpacked a rapidly developing legal battle over U.S. tariffs. With major retailers seeking to preserve their rights to refunds—and courts signaling potential skepticism toward the legality of sweeping tariffs—importers are facing both risk and opportunity. Michelle broke down what the recent court rulings mean, why refunds may still be possible , and how companies should prepare now. December 18, 2025 KXYL Radio Brownwood/Coleman, Texas Hosts: Celinda Hawkins and J.R. Williams Why Companies Sued Over Tariffs —and Why the Court Said No Michelle explained that a group of major importers recently filed suit in the U.S. Court of International Trade, asking for an injunction to stop U.S. Customs from finalizing tariff calculations—a process known as liquidation . Their goal was simple: preserve the ability to receive refunds quickly if the tariffs are later ruled unlawful. The court denied that request. While companies can still pursue refunds, the ruling means Customs will continue finalizing duties, forcing importers into a longer, more complex refund process if the tariffs are overturned. “Not even close—this would be massive compared to prior tariff actions, because it applies to virtually any product and almost any country.”  Supreme Court Review and the $130 Billion Question According to Michelle, the stakes are enormous. A recent Department of Justice filing indicated that roughly $130 billion  in tariffs has already been collected. If the Supreme Court of the United States ultimately finds the tariffs unlawful—as some legal observers expect—importers will need to file formal protests and refund requests after the fact. That process can take months or even years. Michelle noted that while the lawsuits aimed to speed things up, their denial may actually slow the return of funds across the board. “If the Supreme Court decides that these tariffs are unlawful, importers who have paid billions altogether in tariffs are going to have to go back through an entire process to protest and request refunds.”  What Importers Can Do Right Now Despite the uncertainty, Michelle emphasized that businesses are not powerless. Her firm is actively reviewing how clients classify and value their imports—areas where technical errors can quietly cost companies millions. In one case, correcting valuation methodology alone resulted in substantial duty savings. Whether or not the tariffs are struck down, careful compliance, proper valuation, and strategic planning can significantly reduce exposure and improve cash flow. Tariff uncertainty isn’t just a policy issue—it’s a financial one. If your company imports goods and is concerned about overpaid duties, delayed refunds, or compliance risk, now is the time to act. Schulz Trade Law helps importers prepare for refunds, reduce tariff exposure, and navigate complex trade regulations with confidence. 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 Are Shrinking Holiday Shopping Lists Michelle Schulz discusses rising consumer costs on KCBS Radio As the holiday season approaches, many consumers are discovering that their shopping lists are shorter than usual—not by choice, but by necessity. In a recent KCBS Radio  segment, Michelle Schulz , founder and managing partner of Schulz Trade Law, explained how tariffs are playing a major role in driving up prices on everyday goods, particularly during peak gift-buying season. According to Michelle, importers across the country are feeling the pressure as tariffs add anywhere from 10% to as much as 38% to certain product categories. These added costs don’t stay at the border—they move through the supply chain and ultimately land with businesses and consumers alike. December 16, 2025 KCBS Radio San Francisco Reporter: Cathy Whitman Which Products Are Most Affected? Michelle highlighted several categories that are seeing especially sharp increases, including electronics, clothing, shoes, and toys. Footwear vendors, in particular, are struggling to maintain margins, as higher import costs make it difficult to price products at levels consumers can afford. Toys are also heavily impacted, with any toy imported from China subject to increased tariffs—and even toys from Europe now facing tariffs around 15%. Why China Matters So Much Most toys, electronics, and holiday decorations sold in the United States are manufactured in China. That concentration means tariff changes disproportionately affect seasonal goods. While some larger companies may be able to adjust by shifting suppliers or sourcing components from different countries, many small and mid-sized importers lack the flexibility to make those changes quickly. What This Means for Businesses and Consumers The result is a squeeze felt on both sides of the counter: businesses absorb what costs they can, and consumers pay more—or buy less. As Michelle noted, tariffs are no longer a narrow trade issue ; they are shaping purchasing behavior and business strategy nationwide. Understanding how tariffs apply to your products is essential for managing risk and staying competitive. Schulz Trade Law works with importers to navigate complex trade regulations and identify compliant strategies to mitigate tariff exposure. If rising import costs impact your business, contact Schulz Trade Law to learn how we can help you plan 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.

Tariffs, Toys, and the Real Cost to Consumers Why Your Holiday Shopping Costs More: Michelle Schulz on Tariffs and Trade Policy Trade attorney Michelle Schulz , founder of Schulz Trade Law, explains how tariffs are quietly reshaping prices on everything from toys to electronics. December 16, 2025 Wisconsin's Afternoon News WTMJ Radio, Milwaukee Host:  Julia Fello In a recent radio interview on WTMJ in Milwaukee, Michelle Schulz , founder and managing partner of Schulz Trade Law , joined hosts to discuss a question many consumers are asking this season: Why does everything cost more?   Drawing on her experience advising importers and manufacturers across industries, Michelle broke down how current U.S. tariff policy—particularly broad-based duties affecting imports from China and other countries—is driving up prices on everyday goods, with ripple effects felt by businesses and consumers alike. Why Holiday Gifts Are Getting More Expensive Michelle explained that tariffs are significantly increasing the cost of commonly imported goods, including toys, electronics, clothing, furniture, and household items. Many products are now subject to a baseline tariff of at least 10%, with additional duties layered on depending on the product category. For example, clothing prices are up roughly 20% on average, while toys have seen increases closer to 17%—costs that ultimately land on consumers’ checkout receipts. Why China Remains at the Center of the Tariff Conversation The interview highlighted that the vast majority of toys and holiday decorations are still manufactured in China. While some higher tariffs have been temporarily paused, numerous others—such as steel and aluminum tariffs—remain in effect. According to Michelle, this “across-the-board” approach is far more impactful than the more targeted measures seen during earlier trade disputes, intensifying pressure on companies that rely on Chinese manufacturing and deepening trade tensions overall. “Anything from China or any other country is going to have at least a 10% baseline tariff, and then you add others on top of that.” Are Any Industries Spared? Not Really. While no sector is truly immune, Michelle noted that some large pharmaceutical companies have managed to reduce tariff exposure by investing in U.S.-based manufacturing. These strategic moves can sometimes influence trade outcomes—but smaller companies often lack the capital to pivot in the same way. As a result, tariffs disproportionately affect small and mid-sized businesses, increasing costs and, in some cases, threatening their long-term viability. “It has been vastly more impactful on companies, and all the way down to the consumer.” Tariffs are not just a policy issue —they are a business reality. If your company imports goods, sources materials globally, or is facing rising costs tied to trade regulations, Schulz Trade Law can help you understand your exposure and identify compliant strategies to reduce risk. Contact us today to schedule a consultation and 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.

Tariffs, Refund Races, and the Growing Cost of Trade Uncertainty Michelle Schulz breaks down refund lawsuits, Supreme Court risk, and why tariffs aren’t delivering their promised results. In a wide-ranging interview on WLW Radio ’s Scott Sloan Show, Michelle Schulz , founder and managing partner of Schulz Trade Law, discussed the growing legal and economic fallout from U.S. tariff policy. With billions of dollars already collected, major companies racing to secure refund rights, and farmers and importers absorbing long-term damage, Michelle explained why the current tariff regime is creating uncertainty rather than leverage—and what businesses should be doing now. December 17, 2025 WLW Radio Cincinnati Hosts: Scott Sloan The Race for Refunds and a Legal Bottleneck As tariffs continue to generate massive revenue, large companies such as Costco, Revlon, and Ray-Ban have moved quickly to preserve their ability to receive refunds if the tariffs are ultimately struck down. These companies sought to block U.S. Customs from finalizing duty calculations—known as liquidation—to speed up repayment. That effort failed. The U.S. Court of International Trade denied a consolidated motion to delay liquidation, setting the stage for a much longer refund process if the tariffs are overturned. “If all that has to be refunded, then it does have to be refunded—but we’re going to have to go through a long process to get that money back.” Michelle warned that even if refunds are legally required, administrative reality means companies could wait months or years to recover billions already paid. Supreme Court Uncertainty and a $130 Billion Problem The potential scale of refunds is unprecedented. According to filings referenced in the interview, roughly $130 billion  in tariffs has already been collected—and that number continues to grow. Michelle noted that while the Supreme Court of the United States initially expressed skepticism about the legality of these tariffs, the outcome is no longer predictable. “In the beginning, I thought it was pretty likely the Supreme Court would strike them down… but the more I read and follow the government’s reactions, I think it could go either way.”  If the Court invalidates the tariffs after liquidation occurs, importers will still be entitled to refunds—but only through a formal protest process that Customs is historically slow to administer. Why Tariffs Aren’t Working —and Who’s Paying the Price Michelle also addressed whether tariffs are achieving their stated goals, particularly with respect to China. The data suggests otherwise: China’s trade surplus continues to grow as it expands exports to other regions, while U.S. importers and farmers absorb higher costs and retaliatory losses. “Relative to China, we can see that the tariffs really aren’t having the intended effect… China seems to be fine.”  Farmers face a double burden: higher import costs for equipment and lost export markets due to retaliation. Subsidy checks, Michelle noted, do little to offset structural damage or restore lost demand. At the same time, U.S. companies are increasingly viewed as unreliable trading partners, as sudden tariffs, price renegotiations, and policy reversals undermine long-term relationships abroad. What Importers Can Do Now Despite the uncertainty, Michelle emphasized that businesses still have meaningful opportunities to reduce exposure. Reviewing tariff classifications, country-of-origin determinations, and—especially—customs valuation can uncover significant overpayments. “We’ve had importers overpaying because they were overvaluing their goods… sometimes it’s a technicality, but that technicality matters.” Tariff uncertainty isn’t going away—but overpayment doesn’t have to be inevitable. If your company imports goods and is concerned about duties, refunds, or compliance risk, Schulz Trade Law can help you identify savings, prepare for potential refunds, and navigate trade complexity with confidence. 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.

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.

Free trade has become a cornerstone of modern economic policy, shaping how countries interact and exchange goods and services. Over the past few decades, nations have increasingly entered into agreements to reduce tariffs, eliminate trade barriers, and foster economic cooperation. These agreements play a vital role in promoting global trade, encouraging investment, and boosting economic growth. This article explores the landscape of free trade agreements worldwide, highlighting key examples, their benefits, challenges, and future trends. Global trade at an international shipping port Understanding Global Trade and Its Importance Global trade refers to the exchange of goods and services across international borders. It allows countries to specialize in producing what they do best, leading to increased efficiency and access to a wider variety of products for consumers. The growth of global trade has been facilitated by technological advancements, improved transportation, and the establishment of trade agreements. Trade agreements are formal arrangements between countries that set the rules for trade. They can be bilateral (between two countries), regional (among several countries in a region), or multilateral (involving many countries globally). These agreements aim to reduce tariffs, quotas, and other trade barriers, making it easier and cheaper to trade. The importance of global trade lies in its ability to: Enhance economic growth  by opening new markets. Create jobs  in export-oriented industries. Increase consumer choice  and lower prices. Promote innovation  through competition. Strengthen diplomatic relations  between countries. Key Types of Trade Agreements Shaping Global Trade Trade agreements vary in scope and depth. Understanding the main types helps clarify how they influence global commerce. Bilateral Trade Agreements These involve two countries agreeing to reduce trade barriers between them. Bilateral agreements are often easier to negotiate and implement. For example, the United States-Mexico-Canada Agreement (USMCA) replaced NAFTA and modernized trade rules between these North American neighbors. Regional Trade Agreements (RTAs) RTAs include multiple countries within a geographic region. The European Union (EU) is a prime example, functioning as a single market with free movement of goods, services, capital, and people among member states. Another example is the Association of Southeast Asian Nations (ASEAN) Free Trade Area, which promotes trade among Southeast Asian countries. Multilateral Trade Agreements These involve many countries and are usually negotiated under the auspices of international organizations like the World Trade Organization (WTO). The WTO’s agreements set global trade rules and provide a platform for resolving disputes. Preferential Trade Agreements (PTAs) PTAs grant preferential access to certain products from participating countries by reducing tariffs but do not eliminate them entirely. These agreements often serve as stepping stones toward deeper trade integration. Major Free Trade Agreements Around the World Several landmark agreements have shaped the current global trade environment. Here are some of the most influential: North American Free Trade Agreement (NAFTA) / USMCA Originally signed in 1994, NAFTA created one of the world’s largest free trade zones between the US, Canada, and Mexico. It eliminated most tariffs and facilitated cross-border investment. In 2020, it was replaced by the USMCA, which updated provisions on digital trade, labor rights, and environmental standards. European Union Single Market The EU’s single market is one of the most integrated trade blocs globally. It allows goods, services, capital, and people to move freely among member states. The EU also negotiates trade agreements with other countries, such as the EU-Japan Economic Partnership Agreement. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) This agreement includes 11 countries across the Asia-Pacific region, including Japan, Canada, and Australia. It aims to reduce tariffs and establish common standards on labor, environment, and intellectual property. Mercosur Mercosur is a South American trade bloc comprising Argentina, Brazil, Paraguay, and Uruguay. It promotes free trade and the fluid movement of goods, people, and currency among member countries. African Continental Free Trade Area (AfCFTA) Launched in 2021, AfCFTA is the largest free trade area by number of countries, aiming to create a single market for goods and services across Africa. It seeks to boost intra-African trade and economic integration. Cargo ships at a global trade port facilitating international trade Benefits and Challenges of Free Trade Agreements Benefits Market Access : Companies gain access to new markets, increasing sales opportunities. Lower Costs : Reduced tariffs and streamlined customs procedures lower costs for businesses and consumers. Investment Growth : Trade agreements often encourage foreign direct investment by providing a stable and predictable environment. Economic Growth : Increased trade can stimulate economic growth and job creation. Improved Standards : Many agreements include provisions on labor rights, environmental protection, and intellectual property. Challenges Unequal Gains : Benefits may not be evenly distributed, with some sectors or regions losing out. Sovereignty Concerns : Countries may worry about losing control over regulations and policies. Adjustment Costs : Industries facing increased competition may need time and support to adapt. Complex Negotiations : Reaching consensus among multiple countries can be difficult and time-consuming. Trade Disputes : Disagreements over interpretation or implementation can lead to conflicts. How Businesses Can Leverage Free Trade Agreements Businesses looking to expand internationally should understand how to use trade agreements to their advantage. Here are some practical recommendations: Research Applicable Agreements : Identify which agreements cover your target markets and what benefits they offer. Understand Rules of Origin : These rules determine whether a product qualifies for preferential treatment under an agreement. Comply with Standards : Ensure products meet the technical, safety, and labeling standards required. Use Trade Facilitation Measures : Take advantage of simplified customs procedures and reduced documentation. Monitor Changes : Stay updated on new agreements or amendments that could affect your trade operations. Seek Expert Advice : Consult trade lawyers or advisors to navigate complex regulations and maximize benefits. The Future of Global Trade Agreements The landscape of global trade agreements continues to evolve. Emerging trends include: Digital Trade Provisions : Agreements increasingly address e-commerce, data flows, and cybersecurity. Sustainability Focus : Environmental and labor standards are becoming integral parts of trade deals. Regional Integration : New regional blocs and partnerships are forming, especially in Asia and Africa. Trade and Technology : Issues like intellectual property rights and technology transfer are gaining prominence. Geopolitical Shifts : Trade agreements are influenced by changing geopolitical alliances and tensions. Countries and businesses must remain agile and informed to navigate this dynamic environment successfully. Navigating the Complex World of Trade Agreements Understanding the nuances of free trade agreements is essential for anyone involved in international commerce. These agreements provide frameworks that can open doors to new markets and opportunities. However, they also require careful navigation to comply with rules and maximize benefits. For those interested in learning more about free trade agreements , exploring expert resources and legal advice can provide valuable insights. By staying informed and proactive, businesses and policymakers can harness the power of global trade to drive growth and prosperity. This condensed overview highlights the critical role of trade agreements in shaping the global economy. As the world becomes more interconnected, understanding these agreements will remain a key factor in successful international trade 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. Contact Us

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.