Tag: refund

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.

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

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.

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

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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.”

Authority	Legal Trigger	Implementation Speed	Duration & 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 232	Imports 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.

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.

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.

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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.

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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.”

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.

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“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.”

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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.

Navigating the Post-Trump Tariff Refund Landscape

Dallas Trade Law Expert, Michelle Schulz, Explains How Companies Can Secure Refunds on Unconstitutional Duties

The international trade world recently experienced a seismic shift. With the Supreme Court deeming significant portions of the Trump administration’s tariff policies void, thousands of U.S. companies may now be eligible for substantial refunds. However, reclaiming those tariff refunds isn’t as simple as sending an invoice to the government.

In a recent interview on Your Money Now, Michelle Schulz, founder of Schulz Trade Law & Consulting and a leading expert in international trade litigation, outlined the roadmap for businesses seeking to recover their duty payments.

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The Path to Recovery: Precision and Compliance

As Schulz points out, the burden of proof rests entirely on the importer. When the stakes involve federal refunds, the government’s scrutiny is at an all-time high.

“It’s very important to dot your i’s and cross your t’s in this situation where you’re asking for money back,” Schulz noted.

To successfully navigate this process, Schulz identifies two critical pillars for any recovery strategy:

• Deep-Dive Import Compliance: Before filing a claim, companies must ensure their entire import history is beyond reproach. Any existing compliance gaps could not only jeopardize a refund but potentially trigger an unwanted audit.
• Granular Duty Calculation: Understanding exactly how your duties were calculated—and where the specific voided policies applied—is essential. Accuracy in these technical calculations is the difference between a successful claim and a rejected one.

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Don’t Leave Money on the Table

The complexity of trade law means that many companies may not even realize the full extent of the refunds they are owed. The transition from policy to litigation to actual recovery requires a meticulous, legally sound approach.

The SCOTUS Tariff Ruling: Why the Battle for Free Trade is Just Beginning

How the Administration is Pivoting to New Statutes After a Major Legal Defeat

The U.S. Supreme Court has delivered a significant blow to executive overreach in international trade. By striking down global tariffs imposed under emergency powers, the Court has reasserted that the power to tax remains with Congress. However, as the Dow surges 200 points in response to the news, a new era of trade uncertainty is already unfolding.

International trade attorney Michelle Schulz joined KNX Radio to explain why importers should temper their celebrations with strategic preparation.

The Constitutional Rejection of IEEPA

The nation’s highest court ruled that the administration broke federal laws by claiming emergency powers under the 1977 International Emergency Economic Powers Act (IEEPA). The ruling clarified that the President cannot unilaterally levy reciprocal taxes on nearly every trading partner without Congressional approval.

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

— Antwan Lewis, Reporting on the SCOTUS Decision

The New Arsenal: Section 232 and Section 301

Despite the ruling, the administration is vowing to use “other avenues” to keep tariffs in place. This includes a pivot to alternative federal statutes that do not require an emergency declaration but still allow for significant trade barriers:

• Section 232 (Trade Expansion Act of 1962): Used to justify an across-the-board 10% tariff on goods based on national security.
• Section 301 (Trade Act of 1974): Allows for investigations into “unfair trade practices,” which could lead to additional, targeted tariffs.

“The President can legally impose tariffs under different laws even if businesses would rather not see that happen.” 

— Michelle Schulz

Importer Frustration and the “Complex” Path to Refunds

While the SCOTUS decision offers hope for reclaiming past payments, Michelle Schulz warns that the refund process for IEEPA-related tariffs will be “complex and nuanced”. Many importers remain frustrated, as they continue to face penalties for non-payment while navigating a system that may soon be hit with a fresh wave of secondary tariffs.

“There may be refunds available on these IEEPA tariffs, but importers should keep in mind that that could take a very long time.” 

— Michelle Schulz

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SCOTUS Strikes Down Global Tariffs: What Importers Need to Know Now

Navigating the Path to Refunds in the Wake of the Supreme Court’s Landmark Decision

The landscape of international trade shifted dramatically this past Friday. In a long-awaited ruling, the Supreme Court of the United States struck down the majority of President Trump’s global tariffs. While the decision brings a wave of optimism to the trade community, the road to financial recovery is paved with complex administrative hurdles.

Michelle Schulz, International Trade Attorney and founder of Schulz Trade Law, joined This Morning with Gordon Deal to break down the ruling and provide a roadmap for businesses seeking to reclaim their funds.

Immediate Impact vs. Long-term Recovery

While the collection of these tariffs was expected to cease immediately following the Friday ruling, the refund process is far from instantaneous. Schulz warns that while the legal victory is significant, the logistics of returning capital to businesses will be “a bit of a chaotic process”.

“The collection of tariffs should stop immediately. However, refunds are going to be a different story… I think it’s going to be months, if not longer.” — Michelle Schulz

The Digital Hurdles of the Automated Commercial Environment

Refunds will be processed electronically through the Automated Commercial Environment (ACE). For importers, this means technical readiness is just as important as legal standing. Businesses must ensure they are properly registered and that their import data is meticulously organized to facilitate claims.

“Importers need to be set up in the electronic system and ready to go with their claims. It’s not always easy from a techie perspective—you have to do your homework there.” — Michelle Schulz

Avoiding the “Defensive”: Record Keeping and Compliance

With Customs currently in a high-enforcement mode, Schulz emphasizes that “getting your ducks in a row” is a matter of survival, not just administration. Customs requires a five-year record-keeping period, and any gaps in documentation could lead to seizures or penalties rather than refunds.

“If you are not prepared and if you don’t have five years of import records, you could find yourself on the defensive.” — Michelle Schulz

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