Author: ryderr

The Supreme Court’s “Trillion-Dollar Test”

Michelle Schulz on Tariffs, Emergencies, and Executive Power

As the Supreme Court weighs whether President Trump overstepped his authority with sweeping tariffs, trade attorney Michelle Schulz explains why the stakes reach from Wall Street to Main Street.

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The “Emergency” at the Heart of the Case

During her interview with KNX Radio Los Angeles, international trade attorney Michelle Schulz explained that the Supreme Court is examining whether President Trump legally invoked the International Emergency Economic Powers Act (IEEPA) to impose tariffs without congressional approval.

“That was the initial launch of the IEEPA tariffs,” Schulz said. “It was aimed at China, Mexico, and Canada for the fentanyl crisis—which, I don’t know if that’s considered an emergency or not.”

What began as a narrow policy has since expanded.

“It then expanded in April to the reciprocal tariffs—those country-by-country tariffs that range all the way from 10% to 50% and continue to be arbitrarily assessed depending on how the executive branch feels about that country.”

A Question of History and Legitimacy

Schulz emphasized that this use of IEEPA has no real precedent in modern trade law.

“Historically, the IEEPA has not been used for this purpose,” she said. “The government argued that President Nixon achieved a 10% tariff under the Trading with the Enemy Act back in the 70s—but that’s not the same thing. That was limited, and that was a long time ago.”

The conservative justices, Schulz noted, appeared skeptical that a years-long trade policy could qualify as an “emergency.” The ruling could determine whether future presidents retain unilateral power to impose tariffs—or whether Congress must reassert its constitutional authority over trade.

Economic Fallout and Possible Refunds

If the Court rules against the administration, Schulz said the results could be both chaotic and beneficial. “

It could be chaos, but it’s beneficial for importers,” she explained. “U.S. companies are losing money every day because they’re the ones responsible for paying the tariffs. They’ve lost a lot, so if this comes out in favor of the plaintiffs, it could mean a lot of refunds for importers.”

Those refunds could translate into a short-term boost for businesses and the stock market. As Schulz put it, “

The government has collected a lot of taxes through these tariffs—but it’s the companies in the U.S. that are primarily paying those. So we’re taxing ourselves.”

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Supreme Court Weighs Tariff Power

Michelle Schulz on the Legal Stakes and Business Fallout

Trade attorney Michelle Schulz joins KXAN Austin to explain how the Supreme Court’s review of President Trump’s tariffs could reshape presidential power—and why small businesses are caught in the middle.

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The Legal Question:

Presidential Power or Overreach?

As the U.S. Supreme Court heard oral arguments over President Trump’s sweeping tariffs on foreign goods, international trade attorney Michelle Schulz provided legal context from Texas. The justices are reviewing whether the administration overstepped its authority by invoking the International Emergency Economic Powers Act (IEEPA)—a law originally meant for national emergencies.

“The plaintiffs include a group of states as well as small businesses,” Schulz explained. “They’re saying that the President’s interpretation of the law gives the executive branch unlimited authority to impose tariffs—and that’s not what the law was intended for.”

Schulz noted that the justices appeared skeptical.

“No one ever uses this for tariffs, and it doesn’t say it authorizes tariffs,” she said. “It appears there’s a little bit of a stretch.”

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The Business Impact:

50% Tariffs and Fading Options

For many of Schulz’s clients, the debate is not theoretical—it’s financial survival.

“This impacts not just large companies but also small ones, and we have both contacting us,” she said. “They’re saying, ‘We can’t mark up the price anymore.’ They’ve reached agreements with their foreign suppliers, but most suppliers aren’t willing to take on that legal burden of paying the tariff.”

Some of the tariffs under review are as high as 50%, which has left many businesses squeezed between rising import costs and consumer resistance.

“It’s a matter of money and whether they can pass the cost to their clients,” Schulz said. “For some, it’s closing their doors or finding new sourcing entirely.”

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Beyond the Case:

Manufacturing, Policy, and the Future of Tariffs

While the administration has argued that tariffs encourage domestic manufacturing, Schulz noted that the reality has often been the opposite.

“Importers are not able to manufacture because they can’t import the parts and components at a reasonable price anymore,” she said. “Manufacturing jobs haven’t just come to the U.S.—they’ve also left.”Michelle Schulz on KXAN-TV, Aus…

Even if the Supreme Court sides with the plaintiffs, Schulz warned that tariffs won’t disappear.

“There are other authorities like Section 232 and Section 301, which cover copper, aluminum, steel, furniture, and pharmaceuticals,” she said. “Those aren’t impacted by this decision. This case only applies to the country-by-country tariffs based on how our administration feels about each nation.”

Supreme Court Reviews Trump Tariffs

Michelle Schulz on What’s at Stake for Texas Businesses

As the Supreme Court weighs the limits of presidential power, trade attorney Michelle Schulz explains how the ruling could shape refunds, sourcing strategies, and the survival of small businesses.

The Case Before the Supreme Court

This week, the U.S. Supreme Court began hearing arguments on whether President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when imposing wide-ranging tariffs. Speaking with NBC 5, Dallas-based trade attorney Michelle Schulz said the legal question centers on whether the law was ever meant to be used this way.

“I have never seen it used for tariff leverage before,” Schulz explained. “If I’m honest, I do not believe that it follows the letter of the law.”

The outcome could redefine how presidents wield economic power—and directly impact businesses across Texas and the nation.

The Human and Financial Toll

NBC 5’s story featured Sue Schultz, owner of What’s Poppin Texas in Waxahachie, whose 25-pound boxes of white chocolate jumped $40 per case under the new tariffs. She told reporters she’s tried to keep prices down for her customers, even though it’s squeezing profits.

For many importers, Schulz said, the financial hit has already been devastating.

“If the court rules against the President, customs would then owe refunds to our clients—many of whom have lost millions of dollars in revenue.”

But if the Court upholds the tariffs, companies will have to double down on compliance and logistics reviews.

“You’ll see more importers reviewing specifics of their transactions,” Schulz added. “Many have already moved their sourcing—and that’s not very helpful.”

Beyond the Ruling: What Comes Next

Even if the tariffs are struck down, Schulz cautioned that the administration still has other legal tools available.

“Even if the tariffs are ruled illegal, the Trump administration has several other options to impose tariffs.”

For small business owners like Sue, the uncertainty remains daunting. “I’m really hoping they can pull back some of these tariffs,” she said. “They’re hurting the little guy. But once prices go up, I don’t know if they’ll ever really come back down.”

The China Trade Deal, Supreme Court Showdown, and Tariff Fallout

Michelle Schulz Explains What’s Next on WBAP Radio

Trade attorney Michelle Schulz breaks down the “partial” U.S.–China deal, who’s being hit hardest by tariffs, and what the upcoming Supreme Court decision could mean for importers and consumers alike.

The Real-World Impact of Tariffs

Discussing President Trump’s new “partial” China trade deal, Michelle Schulz, founder of Schulz Trade Law, explained that while the administration touts progress, the effects on American businesses remain severe.

“I represent large companies, importers, and also small and medium-sized importers,” she said. “What I’m seeing is that companies of all sizes are impacted down to the individual. Business owners have contacted me saying, ‘My business is no longer sustainable because the tariffs on my goods are too high, and my customers won’t pay that.’”

Schulz noted that some sectors—especially apparel, accessories, and small consumer goods—are struggling most.

“We’ve got companies importing things like clothes and jewelry and shoes that just can’t make it under the current environment.” 

The Supreme Court

and the Limits of Presidential Power

The interview also previewed the Supreme Court hearing scheduled for November 5, where justices will decide whether the President has legal authority to impose “reciprocal tariffs” under the International Emergency Economic Powers Act (IEEPA). Schulz explained:

“The question is—Is this an emergency, or is this just for leverage? In my mind, the law is clear. An emergency would have to be more imminent harm rather than overall leverage in a multi-year trade war.”

If the Court rules against the administration, Schulz said importers could be eligible for refunds on tariffs deemed unlawful.

“Importers would have to go to customs and request refunds on anything that was ruled illegal,” she said. “It’s great for importers, but I wouldn’t expect it to happen quickly.”

Even with a ruling against the President, Schulz noted that tariffs on steel, aluminum, and other materials would remain—since those were enacted under different laws tied to national security.

The Long Game:

China, the WTO, and the Future of Trade

Looking beyond the immediate legal battles, Schulz explained that China’s long-term strategy remains focused and ambitious. “It’s only a partial deal,” she said.

“Keep in mind, China’s looking long term—they’re hoping to integrate military and commercial products and have a world-class military by 2049.”

Even if the Supreme Court strikes down some tariffs, Schulz expects the administration to continue pursuing alternative legal paths.

“If it’s not an emergency, Trump has already initiated investigations for unfair trade practices and national security under Sections 301 and 232,” she explained. “They’re kind of a ‘Plan B.’”

As for global recourse, Schulz noted that China could take the matter to the World Trade Organization, but is unlikely to prevail.

“They could, but I don’t think they would fare well,” she said. “China has a reputation for not following WTO rules.”

Tariffs Tighten on Furniture and Wood

Michelle Schulz Explains What’s Ahead for U.S. Buyers and Businesses

International trade attorney Michelle Schulz outlines how new furniture and cabinetry tariffs—rising as high as 50%—are set to increase prices and pressure both importers and consumers.

New Tariffs Take Effect

During her interview with WBAP Radio in Dallas–Fort Worth, Michelle Schulz confirmed that the latest round of tariffs is already being felt across the furniture and cabinetry markets.

“As of Tuesday, the new thing is furniture, wood cabinetry, kitchen cabinets that are imported are subject to a 25% tariff,” she said. “Vanities and associated products also 25%. Furniture and other cabinetry can go up to 50%, and we’re expecting this to increase to 50% for everything by January 1.”

Schulz noted that the changes are happening fast and may continue to fluctuate:

“I can’t predict if this will really happen or if this will change again, but this week, it’s happening.”

Rising Costs and Consumer Confusion

When asked whether consumers can see the tariff costs reflected in retail prices, Schulz explained that it’s not always transparent.

“You might see a line that shows a tariff charge—or you might not,” she said. “There’s no requirement that a company show you which part is the tariff. But our clients are hiking up prices because they can’t keep up.”

With supply chains still strained from earlier trade actions, the combination of new duties and high material costs could make furniture, cabinetry, and home goods even more expensive heading into 2026.

How Tariffs Are Applied

Schulz also broke down how tariffs are actually assessed—a common source of confusion among consumers.

“The tariff is assessed at the time of customs entry,” she said. “Your tariff depends on what the tariff code was for the item at the time of entry. If you import a complete piece of furniture, you pay the tariff on the complete piece. If you’re importing components to assemble here, the tariff is on the components coming in.”

She added that correct classification is critical: “

It’s important to understand whether your tariff coding is correct. If it’s not, you could be overpaying—or facing compliance problems later.”

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