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  • War in the Middle East: Time to Review Your Company’s Force Majeure Clauses

    War in the Middle East: Time to Review Your Company’s Force Majeure Clauses

    Strategic Partnership Article

    War in the Middle East

    Time to Review Your Company’s Force Majeure Clauses

    Guest Article by S. George Alfonso, The Law Offices of S. George Alfonso, PLLC. Presented with permission by the firm’s strategic partner Schulz Trade Law, PLLC. April 28, 2026

    Download this Article

    Disclaimer: This article is strictly limited to the legal analysis of force majeure provisions and is not intended as a political statement. Our goal is solely to provide practical guidance to help businesses maintain operations and review their specific contract clauses.

    Summary

    This article outlines key issues facing U.S. and international businesses arising from the Israeli/U.S. war against Iran and its regional proxies, which has expanded into a broader Gulf (if not global) conflict. It also highlights the potential relief available through the invocation of contractual force majeure clauses in contracts, when and if possible.

    Evaluate your options for invoking force majeure and develop a strategy.

    Contact Schulz Trade Consulting

    Next Steps
    Download this article

    The Iran War Effects Far More than the Energy Supply Chain

    The Israeli/U.S. launch of “Operation Epic Fury” on February 28th initially concentrated risk on the Strait of Hormuz and the global energy supply chain related to that narrow channel of water.  Iran’s rapid response – via drone and missile attacks—effectively shut down the Strait by triggering the withdrawal of insurance coverage for tankers who were seeking ingress or egress from through the Strait.

    This disruption amounts to a de facto embargo on over 20% of the world’s oil resources. However, the consequences extend far beyond fuel markets as petroleum is essential to manufacturing an almost innumerable amount of products, including plastics, textiles, cosmetics, and construction materials, with diesel fuel being essential for global logistics. As a result, the interruption of this supply chain has already and will continue to render performance by parties under countless commercial contracts as impracticable to even impossible around the world.

     

    Force Majeure Clause

    A Force majeure clause (often referred to as an “Act of God” clause) is (or at least should be) standard in all commercial contracts (U.S. and international), as this clause may provide for the delay or excuse of performance by a party for at least an amount of time (if not completely release the party from contractual obligations and compliance), when extraordinary events beyond a party’s control occur. These typically include both natural and human-made disruptions.

    To successfully invoke such a clause, the triggering event must make contractual performance impracticable, impossible, or illegal—at least temporarily. Depending on the contract’s terms, prolonged disruption may excuse performance in whole or in part.

    Acts of Nature:

    Natural events like hurricanes, tsunamis, tidal waves or pandemics.

    Acts of Man:

    Human-made events such as war, terrorist attacks, strikes, or tariffs.

    Key Limitations and Risks Regarding Force Majeure Clause

    As with all contractual issues or questions – when in doubt, read the directions.  The specific Force Majeure language in a commercial contract will control in every instance, which is why it is critical to ensure that this language is concise, well drafted and clear, without ambiguities or inconsistencies.  Common issues found in Force Majeure Clauses include:

    Notice Requirements:

    Most Force Majeure Clauses will require the party to specifically cite and to some degree timely identify the triggering event(s) which rendered contractual compliance to be impracticable, impossible, or illegal at that time.

    Some Force Majeure clauses impose a strict “use-it-or-lose-it” notice provisions requiring timely written notification after a triggering event. Failure to comply may waive the right to invoke the clause.

    Scope of Covered Events:

    The triggering event must either be explicitly listed or fall within a valid catch-all provision. Ambiguity increases the risk of dispute.

    Immediate Steps to Undertake

    After two months of sustained conflict in the Gulf, businesses should take undertake the following proactive steps in order to better prepare for potential disruptions and minimize the financial risks associated with this unpredictable regional conflict.

    1. Review Existing Commercial Contracts for Force Majeure Clause (If Any):

    Confirm whether or not there is a Force Majeure Clause in each commercial contract and assess whether current conditions may qualify and justify the invocation of the Clause under the specific terms of each commercial contract.

    2. Update Clauses for Future Contracts:

    When negotiating new contracts, consider the new risks and evolving geo-political realities to include in the language of the Force Majeure Clause.

    3. Renegotiate Existing Contracts:

    If possible (whether or not a Force Majeure Clause exists in a particular contract), businesses should explore renegotiating the existing contractual terms, in order to avoid formal disputes (whether a dispute could arise due to an absence of a Force Majeure Clause or regarding the drafted and controlling Force Majeure clause).

    Strategic Decisions and Potential Leverage in the Mere Threat to Invoke the Clause

    Invoking force majeure carries inherent litigation risk. In some cases, the credible threat of invocation may provide sufficient leverage to renegotiate terms without the need to actually trigger the Clause itself and thereby avoid potentially costly and long formal disputes in litigation or arbitration. A careful, contract-specific analysis is essential before taking action.

     

    Conclusion

    The widening Middle East conflict has far-reaching commercial implications well beyond the energy sector and that region of the globe. Businesses should immediately review their contractual obligations to determine whether force majeure relief is available and if so if it may be advisable to claim (or at least threaten to claim vis-à-vis all contractual parties).

    Proactive contract review—and, where necessary, revision through possible re-negotiations – will better position companies to manage risk, maintain flexibility, and protect against ongoing and future disruptions in this turbulent global economy.

    S. George Alfonso founded The Law Offices of S. George Alfonso, PLLC over thirty years ago. He provides his unique brand of “Concierge Counsel” to both U.S. and international clients regarding commercial contract negotiations, as well as U.S. litigation and arbitration.  Mr. Alfonso’s firm focuses on “Problem Solving” (dispute resolution) in a variety of commercial scenarios, including pre-litigation and arbitration, as well as during litigation and arbitration.

    The Law Offices of S. George Alfonso, PLLC is a Strategic Partner with Schulz Trade Law, PLLC, providing the firms’ respective clients with elite international trade, contract, and dispute resolution representation.

    Navigating international trade during a global conflict demands more than just legal knowledge—it requires strategic foresight.

    At Schulz Trade Consulting in partnership with the Law Offices of S. George Alfonso, we help businesses interpret complex clauses in the context of current Middle East developments. Contact us to discuss how we can help you defend your interests and manage performance expectations under your most critical international contracts.

  • Navigating the $166 Billion IEEPA Refund: Opportunity Amidst Obstacles

    Navigating the $166 Billion IEEPA Refund: Opportunity Amidst Obstacles

    Navigating the $166 Billion IEEPA Refund: Opportunity Amidst Obstacles

    The Mechanism is Live—But Is Your Business Ready for the Hurdles?

    Overview

    The federal government has officially opened the application portal for International Emergency Economic Powers Act (IEEPA) tariff refunds, placing an estimated $166 billion back within reach of American importers. While this marks a historic opportunity for liquidity and price stabilization, early reports from the field indicate that claiming these funds is anything but a “click-and-submit” process. From technical failures to regulatory delays, businesses must navigate a complex landscape to secure their payouts.

    April 23, 2026

    NBC 5

    KXAS, Dallas/Fort Worth

    Reporter: Vince Sims

    Watch

    The Reality of the Refund Portal

    As the portal launched, the immediate surge in traffic created significant technical bottlenecks. For many importers, the excitement of the announcement was quickly met with the frustration of a system unable to handle the load.

    Ron Henderson, President of Varaluz, recently shared his experience with NBC 5, describing the process as a “rollercoaster.” For companies that have had to rebrand tariff costs as “pricing strategies” to remain palatable to consumers, these refunds represent a vital chance to prevent further price hikes. However, Henderson notes that the primary challenge remains simply getting the government’s digital infrastructure to cooperate.

    Managing Expectations: The Timeline vs. The Reality

    While the official word suggests a turnaround time for refunds, industry experts advise a more cautious outlook.

    Michelle Schulz, founder of Schulz Trade Law PLLC, emphasizes that while the existence of a formal mechanism is “great news for people in the industry,” the path forward will likely be paved with administrative friction.

    “Theoretically, it should take 60 to 90 days,” Schulz explains. “I expect delays, though. There will be questions, and it may take more than that.”

    Beyond the technical glitches, importers should be prepared for:

    • Government Inquiries: Requests for additional documentation to verify “Importer of Record” status.
    • Compliance Verification: A potential look-back at previous filings triggered by the refund request.
    • Logistical Backlogs: As hundreds of thousands of claims hit the Customs and Border Protection (CBP) desks simultaneously.

    Strategic Takeaway for Importers

    The $166 billion is on the table, but it isn’t “found money.” It is a legal recovery process that requires precision. Importers should ensure their documentation is airtight before attempting to navigate the portal, as errors during the filing process could lead to more than just delays—they could trigger unwanted audits.

    schulz trade consulting icon

    Is your business prepared to claim its share of the IEEPA refunds?

    Don’t let technical errors or documentation gaps leave your funds in the government’s hands.

    Contact Schulz Trade Consulting today for a compliance review and expert guidance on navigating the refund process.

    Don’t wait for the next disruption to secure your trade routes. 

  • Supreme Court Tariff Ruling: Who Actually Gets a Refund?

    Supreme Court Tariff Ruling: Who Actually Gets a Refund?

    Supreme Court Tariff Ruling: Who Actually Gets a Refund?

    The refund portal is open — but for most businesses and consumers, the path to recovering tariff costs is far more complicated than it looks.

    Overview

    When the Supreme Court struck down President Trump’s emergency tariffs, many businesses assumed a refund was on the way. The federal government has since opened an application portal to process an estimated $127 billion in refunds — but trade law experts warn that eligibility is narrow, the process is complex, and the money may not flow where people expect.

    April 20, 2026

    FOX 26

    KRIV TV / Houston

    Interview shown on 117 Channels

    Reporter: Tom Zizka

    Watch

    Refunds Underway

    The ruling set off a wave of anticipation across the business community. Major retailers — Walmart, Target, Nike, Kohl’s, Costco, FedEx, and thousands of smaller importers — are among the more than 300,000 companies that brought goods into the United States under the now-invalidated tariffs. Walmart alone could be due as much as $10 billion in refunds, according to some Wall Street analysts.

    The government’s online portal opened for applications, and while some users reported sluggish performance, it did not crash under the anticipated demand. Customs and Border Protection has indicated the review process will take 60 to 90 days.

    However, the legal picture is more complicated for businesses further down the supply chain. Under current trade law, only registered importers and licensed customs brokers are eligible to file refund claims. If your business purchased goods from an importer but did not directly pay the tariffs yourself, you likely have no legal right to file — regardless of how much those tariff costs affected your bottom line.

    Michelle Schulz, founder of Schulz Trade Law PLLC, underscores the risk for businesses that assumed a refund agreement was implied:

    “If you were a customer of the importer, you don’t technically have a right to file a claim. And if you didn’t have an agreement with the importer that you get a refund when they get a refund, you may not have a right to that claim. It can be a legal mess.”

    Even for eligible importers who do receive refunds, there is no obligation to pass those savings on to consumers or business customers. Some companies have signaled they would lower prices; others are reserving judgment until the money arrives. And separately, a number of other tariffs unrelated to the Supreme Court ruling remain in effect — meaning the broader trade landscape is still very much in flux.

    schulz trade consulting icon

    Not Sure Where Your Business Stands? Let’s Talk.

    Tariff refund eligibility is a nuanced area of trade law, and the window to act is limited. Whether you’re a direct importer evaluating your claim or a business trying to understand your options, Schulz Trade Consulting PLLC can help you navigate the process with clarity and confidence. Contact us today for a consultation.

    Don’t wait for the next disruption to secure your trade routes. 

  • Beyond the Blockade: Navigating the Economic Aftershocks of Global Trade Instability

    Beyond the Blockade: Navigating the Economic Aftershocks of Global Trade Instability

    Beyond the Blockade: Navigating the Economic Aftershocks of Global Trade Instability

    Michelle Schulz joins SiriusXM’s Road Dog Trucking to discuss the Strait of Hormuz, the “ACE” refund system, and the looming threat of a 2026 recession.

    Overview

    As military maneuvers intensify in the Strait of Hormuz and diplomatic tensions rise with our North American neighbors, the U.S. economy is entering a period of “choppy waters.” In a comprehensive interview on Road Dog Trucking with Dan Ronen, international trade attorney Michelle Schulz detailed how these global disruptions are trickling down to the American consumer.

    From surging gas prices to the rerouting of shipping containers around the Cape of Good Hope, the “state of confusion” in global logistics is forcing many U.S. importers to fight for their survival.

    road dog news

    April 14, 2026

    Road Dog Trucking

    SiriusXM

    Host: Dan Ronan, Senior Reporter at Transport Topics

    Listen

    The Logistics Crisis and the Path to Recovery

    The conversation highlighted a critical shift in the trade landscape: the movement toward “near-shoring” is stalling due to instability within the USMCA, while the domestic trucking industry faces a significant dip in container volumes. Michelle emphasizes that for businesses to survive this volatility, they must move beyond traditional logistics and explore technical trade solutions like Foreign Trade Zones (FTZs) and bonded warehouses to manage rising costs.

    Perhaps most pressing for many businesses is the legal battle over tariffs. While many emergency tariffs have been deemed unconstitutional, Michelle warns that reclaiming those funds will be a marathon, not a sprint.

    “Getting the money back is going to be much harder than putting the money in. Customs typically drag their feet on refunds. The good thing about this is it is electronic and it is supposed to be automatic… but it will not be fast. I don’t expect it’ll be a quick turnaround.”

    To facilitate this, Michelle advises importers to immediately utilize the Automated Commercial Environment (ACE) system to identify entries and begin the claim process, even as the government prepares for a “long, slow, litigious process.”

    schulz trade consulting icon

    Secure Your Refunds and Future-Proof Your Supply Chain. 

    Whether you are navigating the complexities of the ACE refund system or looking to implement a Foreign Trade Zone to defer rising tariffs, expert guidance is your best defense.

    Contact Schulz Trade Consutling to connect with a technical expert who can help your company save money and stay compliant in a volatile market.

    Don’t wait for the next disruption to secure your trade routes. 

  • Energy in Crisis

    Energy in Crisis

    Energy in Crisis: How the Conflict in Iran is Reshaping Global Trade

    Expert insights from Michelle Schulz on surging oil prices, insurance standstills, and the ripple effect on American consumers.

    Overview

    The intensifying conflict with Iran has sent shockwaves through the global economy, pushing crude oil prices past $100 a barrel for the first time in four years. With approximately 20% of the world’s oil supply flowing through the Strait of Hormuz, the halt of tanker traffic has created a supply bottleneck that threatens to drive up costs across nearly every sector of the U.S. economy—from transportation and manufacturing to the price of groceries.

    March 9, 2026

    Local News Live

    Gray Media/TV

    Host: Stetson Miller

    The Logistics of a Standstill

    In a recent interview with Gray Media’s Local News Live, Michelle Schulz, founder of Schulz Trade Law, explained that the primary driver behind the sudden halt in traffic isn’t just the physical conflict, but the collapse of the necessary financial and insurance infrastructure that allows global trade to function.

    As shipping lanes become combat zones, the cost of risk becomes prohibitive. Michelle noted the immediate impact on the maritime industry:

    “There was a risk that those ships would come under attack from Iran, and as soon as it seemed to become a reasonable possibility, insurers like, you know, Lloyds of London, insurers refused to insure the ships going through. And that basically stopped traffic in its tracks.”

    This interruption is more than a logistical hurdle; it is a catalyst for broader inflation. Because oil and gas are foundational to modern industry, the spike at the pump is only the beginning.

    As Michelle emphasized during the segment,

    “Those prices are going to go up, and they will make other prices go up.”

    schulz trade consulting icon

    Navigate Global Volatility with Confidence.

    In an era where geopolitical shifts can disrupt your supply chain overnight, a proactive legal strategy is essential.

    Contact Schulz Trade Consulting to discuss how we can help you mitigate risk and maintain compliance during times of global crisis.

    Don’t wait for the next disruption to secure your trade routes. 

  • The Billion-Dollar Wait: Navigating Post-Ruling Tariff Refunds

    The Billion-Dollar Wait: Navigating Post-Ruling Tariff Refunds

    The Billion-Dollar Wait: Navigating Post-Ruling Tariff Refunds

    Why recent legal victories for Texas importers may face a long, complex road to actual reimbursement.

    Overview

    Following a landmark U.S. Supreme Court ruling that more than $126 billion in emergency tariffs were collected illegally, the U.S. Court of International Trade has ordered the administration to begin refunds. While U.S. Customs and Border Protection aims to begin processing these claims within 45 days, legal experts warn that the process will be neither swift nor simple.

    March 9, 2026

    “Texas businesses could wait years for tariff reimbursements — if they come at all — despite court rulings.“

    Publication: Houston Public Media

    PBS / NPR

    The Challenge of Recovery

    While the judicial path has cleared, the administrative hurdles remain significant. Importers must weigh the benefit of a refund against the potential for increased government scrutiny. Michelle Schulz, a Dallas-based trade attorney, highlights a critical risk for businesses entering the refund system:

    “They will have a system whereby they’ll refund your money. The problem is, Customs is also going to be looking in that same system to see if you made any mistakes, and they can go back five years.” – Michelle Schulz

    As the administration signals potential shifts toward new 15% global tariffs under different statutes, the actual long-term impact of these hard-won refunds remains to be seen.

    schulz trade consulting icon

    Protect Your Compliance Record While Seeking Redress.

    Navigating the refund process requires a clean five-year audit trail to avoid unexpected liabilities. Contact Schulz Trade Law today to review your records before you file for reimbursement.

    Don’t wait for the next disruption to secure your trade routes. 

    Contact Schulz Trade Consulting today for a compliance audit and strategic consultation

  • Navigating the Ripple Effects: Global Trade and the Iran Conflict

    Navigating the Ripple Effects: Global Trade and the Iran Conflict

    Navigating the Ripple Effects: Global Trade and the Iran Conflict

    The Hidden Costs of Disruption in the Strait of Hormuz

    Overview

    The current tensions in the Middle East have sent tremors through the global supply chain, extending far beyond the gas pump. As conflict disrupts one of the world’s most critical maritime arteries—the Strait of Hormuz—importers and exporters face a complex landscape of rising costs and logistical hurdles. International trade attorney Michelle Schulz recently joined This Morning with Gordon Deal to break down what this means for businesses and consumers alike.

    March 6, 2026

    This Morning with Gordon Deal

    Gordon Deal Show

    Host: Gordon Deal

    Listen

    While energy prices often dominate the headlines during Middle East (Iran) conflicts, the economic impact is much broader. The Strait of Hormuz is a vital transit point for a significant portion of the world’s petroleum and liquefied natural gas. However, as Michelle Schulz points out, the “ripple effect” hits manufacturing and consumer goods almost immediately.

    The Plastic and Production Squeeze

    The cost of raw materials is intrinsically linked to energy stability. Because plastics are derived from petroleum and natural gas, any disruption in the Strait quickly translates to higher production costs for everything from household goods to industrial components.

    “Plastics are based around oil or natural gas. Heating, air conditioning, cooking—all that stuff gets more expensive when there’s a shortage… anything surrounding the oil and gas industry is also going to be impacted.”

    — Michelle Schulz

    Logistics and the “Plan B” Reality

    For companies moving goods through the region, the choice is often between high-risk transit or expensive, time-consuming detours. Safety concerns for personnel and cargo are forcing many to implement secondary logistics strategies, such as rerouting around the Cape of Good Hope.

    “They have to consider whether they will wait, whether it’s safe for their personnel to go in those areas… they’re having to reroute, and they have different routes that they pursue. They do have to make longer hours for pilots, extra jet fuel… you’ll see higher shipping bills.”

    — Michelle Schulz

    The Shifting Regulatory Landscape

    Beyond physical logistics, the legal and regulatory environment is equally volatile. Sanctions and political instability can change the viability of trade agreements and export licenses overnight, requiring businesses to be more agile than ever.

    “Depending on the political situation, you may or may not get your license approved. That can change from day to day… We will definitely change our advice to clients depending on the situation at the time.”

    — Michelle Schulz

    schulz trade consulting icon

    Is Your Supply Chain Prepared?

    In a global economy, local conflicts rarely stay local. Whether you are dealing with increased shipping bills, licensing delays, or the need for alternative sourcing, having a robust legal and logistical strategy is essential.

    Don’t wait for the next disruption to secure your trade routes. 

    Contact Schulz Trade Consulting today for a compliance audit and strategic consultation

  • A Shift in the Tariff Landscape and What Lies Ahead

    A Shift in the Tariff Landscape and What Lies Ahead

    A Shift in the Tariff Landscape and What Lies Ahead

    Understanding the Rejection of Emergency Powers and the President’s Next Move

    In a landmark decision that sent ripples through Wall Street, the Supreme Court has officially struck down the use of emergency powers to impose global tariffs. While the markets responded with a 200-point surge in the Dow, the legal battle over international trade is far from finished.

    Following the ruling, the administration has already signaled its intent to bypass the court’s decision by utilizing alternative federal statutes. Here is a breakdown of the ruling and the new “avenues” currently being explored.

    Feb 20, 2026

    Fox 5

    New York

    Host: Antwan Lewis

    Watch

    The Constitutional Conflict: Congress vs. The President

    The Supreme Court ruled that the administration violated federal law by claiming emergency powers under the 1977 International Emergency Economic Powers Act (IEEPA) to bypass Congress. The justices emphasized that the Constitution clearly grants the power to impose taxes and tariffs to Congress, not the executive branch.

    “The justices in the majority found that the Constitution very clearly gives Congress the power to impose taxes.” — Antwan Lewis

    Alternative Avenues: Section 232 and Section 301

    Despite the ruling, the administration argues that other statutes—specifically Section 232 and Section 301—provide the necessary authority to keep tariffs in place or even expand them.

    • Section 232 (Trade Expansion Act of 1962): Used to justify tariffs based on national security concerns, potentially allowing for an across-the-board 10% tariff on goods.
    • Section 301 (Trade Act of 1974): Allows for investigations into “unfair trade practices,” which can lead to targeted tariffs after a formal request and investigation.

    Market Reaction and Global Implications

    While traders initially cheered the SCOTUS decision, the promise of new tariffs has introduced a fresh layer of uncertainty for US trade partners and manufacturers. The administration remains firm that these actions are necessary to address trade imbalances and international drug trafficking, regardless of the court’s recent holding.

    “The decision might not substantially constrain a president’s ability to order tariffs going forward… numerous other federal statutes authorize the president to impose tariffs.” — Donald Trump

    The Presidential Trade Arsenal: A Comparative Look

    As the administration moves away from the now-invalidated IEEPA (International Emergency Economic Powers Act), they are turning to more structured—but still potent—statutory “hammers.”

    AuthorityLegal TriggerImplementation SpeedDuration & Limits
    Section 122“Large and serious” balance-of-payments deficits.Immediate. No investigation required.Capped at 15% for 150 days (unless extended by Congress).
    Section 232Imports that “threaten to impair” national security.Slow. Requires 270-day Commerce Dept. investigation.No limit on tariff rate or duration once implemented.
    Section 301“Unjustifiable or unreasonable” unfair trade practices.Slow. Requires 12–18 month USTR investigation.No limit on tariff rate; must be reviewed every 4 years.
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    Navigate the Evolving Trade Climate with Schulz Trade Law

    The rules of the game are changing rapidly. Whether you are seeking a refund from the struck-down IEEPA tariffs or preparing for upcoming Section 301 investigations, you need a legal partner who understands the nuance of executive authority.

    Is your supply chain protected against the next wave of tariffs? 

    Contact Schulz Trade Consulting today for a compliance audit and strategic consultation

  • New Tariffs and Refund Chaos: What Businesses Need to Know After the Supreme Court Ruling

    New Tariffs and Refund Chaos: What Businesses Need to Know After the Supreme Court Ruling

    New Tariffs and Refund Chaos: What Businesses Need to Know After the Supreme Court Ruling

    Navigating the shift from invalidated duties to Section 122 enforcement and the long road to recovery.

    Overview:

    The trade landscape shifted dramatically this morning following a landmark Supreme Court decision that invalidated a significant round of tariffs. While many U.S. businesses are celebrating the prospect of recovering billions in duties, the celebration may be short-lived. The administration has already signaled a pivot to new trade enforcement measures, and the path to securing refunds promises to be a complex, uphill battle.

    Feb 20, 2026

    Fox 26 / KRIV TV

    Houston

    Host: Tom Zizka

    Watch

    Here is a breakdown of what this ruling means for your bottom line and how the government plans to maintain its tariff strategy.

    The Multi-Billion Dollar Refund Reality

    The Supreme Court’s decision has invalidated tariffs that accounted for anywhere from $130 billion to $200 billion in collected revenue. While these specific tariffs “go away” as of today, businesses should not expect a windfall overnight.

    The process for claiming these refunds has been on hold pending this decision, and the sheer volume of anticipated claims is expected to create a massive administrative backlog. For businesses in high-volume sectors like Houston’s oil and gas industry, the wait for capital to return to their accounts could be extensive.

    The Section 122 “Backup Plan”

    The administration was prepared for this ruling. Almost immediately following the decision, the President responded by invoking new tariffs under different sections of trade law—specifically Section 122.

    This provision serves as a strategic bridge. It allows the administration to keep tariffs in place for 150 days (roughly 5 months). This window provides the government enough time to conduct necessary investigations and transition the tariffs into other long-term provisions of the trade code. Essentially, while the legal justification has changed, the financial burden on importers remains largely the same.

    Anticipating a Chaotic Recovery Process

    Trade experts warn that the transition between tariff regimes will be far from seamless. As the new executive order takes effect within three days, businesses relying on foreign goods will find themselves writing checks for new tariffs even as they struggle to claw back the old ones.

    Michelle Schulz of Schulz Trade Law emphasizes that the complexity of the refund process cannot be understated. Drawing on her experience with complex trade mechanisms, she notes:

    “My experience with refunds, for example in duty drawback which is often used in oil and gas in Houston, is that it can take months if not years to get your refund. There will be so many refund requests; I anticipate it’s going to be a bit chaotic.”

    Furthermore, Schulz warns that while Section 122 is a temporary measure, the legal framework allows for a much longer game:

    “This is temporary, but there are other much longer-term provisions under which [the President] can continue tariffs. This could drag out for a very long time.”

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    Protect Your Interests Today

    With hundreds of billions of dollars at stake and a “chaotic” refund process on the horizon, businesses cannot afford to take a passive approach. Navigating the intersection of Section 122 investigations and refund claims requires aggressive legal oversight.

    Contact Schulz Trade Consulting today to ensure your claims are filed correctly and your business is prepared for the next round of trade enforcement.

  • Billions in Potential Tariff Refunds Following Landmark SCOTUS Ruling

    Billions in Potential Tariff Refunds Following Landmark SCOTUS Ruling

    Billions in Potential Tariff Refunds Following Landmark SCOTUS Ruling

    DALLAS, TX — Following a monumental Supreme Court decision that has sent shockwaves through the global trade community, Michelle Schulz, founder of Schulz Trade Law, appeared on Fox 4 to provide critical guidance for U.S. importers.

    The ruling, which voided significant portions of the administration’s sweeping tariff policies, has opened the door to potential refunds of $133 billion to $175 billion. However, as Schulz warned viewers, the road to recovery is paved with regulatory hurdles.

    Feb 20, 2026

    KDFW-TV/Fox 4

    Dallas-Fort Worth

    Host: Shaun Rabb

    Watch

    “Dot Your I’s and Cross Your T’s”

    During the segment, Schulz emphasized that the federal government will not simply issue checks to every business that paid the now-voided duties. Instead, the burden of proof rests on the companies to navigate a complex, technical protest process.

    “They need to make sure they understand import compliance and that they understand how their duties are calculated,” Schulz told Fox 4. “It’s very important to dot your i’s and cross your t’s in this situation where you’re asking for money back.”

    Why Precision is Non-Negotiable

    For many businesses, these tariffs—often ranging from 10% to 25%—have significantly impacted bottom lines and consumer prices. Reclaiming that capital requires a three-pronged approach:

    1. Rigorous Audit: Verifying every HTS code and duty calculation.
    2. Compliance Verification: Ensuring past import records meet federal standards to prevent secondary audits.
    3. Strategic Filing: Navigating the specialized Court of International Trade to ensure claims are prioritized.
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    Is Your Business Eligible for a Refund?

    Don’t let administrative complexity prevent your company from recovering unlawfully collected duties. The window to file protests is limited.

    Contact Schulz Trade Consulting today for a comprehensive evaluation of your tariff exposure and recovery options.

    Schedule your consultation and protect your bottom line.