Tag: strait of hormuz

Navigating 50% Canadian Tariffs and USMCA Instability: Insights from Michelle Schulz

International Trade Law Expert Michelle Schulz Weighs In on the 50% Canadian Tariff Proclamation and Growing Uncertainty in North American Trade

Summary

In a recent appearance on This Morning with Gordon Deal, Michelle Schulz, Founder and Managing Partner of Schulz Trade Law, analyzed the White House’s announcement of up to $50\%$ tariffs on Canadian imports and the ongoing disruption to the U.S.-Mexico-Canada Agreement (USMCA). Schulz provided critical guidance for U.S. importers and exporters facing unprecedented planning challenges amid shifting trade policies.

July 22, 2026

This Morning with Gordon Deal

Host: Gordon Deal

Recent Tariff Proclamations and the USMCA Framework

The federal government’s invocation of executive authority to impose $50\%$ duties on broad categories of Canadian goods—citing alleged trade discrimination in sectors such as dairy, alcohol, and automobiles—marks a significant shift in North American commerce. Addressing whether these measures are justified responses or escalations, trade attorney Michelle Schulz emphasized that the underlying friction points have long been part of standard USMCA negotiations. “We have been addressing these areas already under the U.S.-Mexico-Canada Agreement, and these had been the subject of much discussion over the past several years during negotiations anyway,” Schulz noted, pointing out that stepping away from established treaty frameworks is what ultimately triggered the current friction.

Strategic Planning Challenges for Importers and Exporters

For businesses that rely on supply chain predictability, the sudden potential suspension of duty-free treatment creates a severe planning deficit. After decades of relying on duty-free mechanisms under NAFTA and the USMCA, companies must now navigate shifting duty rates, potential Section 301 actions, and uncertain exclusion criteria. “It’s nearly impossible to plan,” Schulz explained during the interview. “We have so many clients who were using the advantages of the USMCA to import and export… and they could not plan ahead at this point because we didn’t even know if we were going to be able to use the USMCA.” She advised businesses to scrutinize product classifications, verify specific exemption status, and prepare for higher landed costs before finalizing cross-border transactions.

Looking Ahead: The Broader Trade Landscape and Isolation Risks

As trade officials signal that additional tariffs under various legal provisions may be on the horizon, U.S. businesses face a long-term shift toward trade isolationism. While other global economies continue forging bilateral and multilateral trade pacts, U.S. importers must prepare for continued volatility. Until broader diplomatic negotiations resume or policy priorities shift, proactive duty management and rigorous compliance audits remain the primary tools for companies seeking to mitigate exposure. Schulz advised companies to continuously monitor tariff schedules, evaluate product-level impact, and explore strategic supply chain adjustments.

Protect Your Supply Chain from Tariff Volatility

Navigating rapid changes in tariff schedules, USMCA compliance, and cross-border regulatory exposure requires proactive legal strategy.

Contact Schulz Trade Consulting today to conduct a comprehensive tariff risk assessment and safeguard your international business operations.

The Strait of Hormuz Reopens:

Why the Global Supply Chain Won’t Recover Overnight

The agreement to reopen the critical waterway is a major step forward, but a massive backlog of vessels and ongoing safety concerns mean supply chain relief will take weeks—if not months—to materialize.

Summary

While news of an agreement to reopen the Strait of Hormuz offers a glimmer of hope for global commerce, international trade experts warn that a return to normal operations is still far off. With over 500 ships stranded for months and critical safety measures like mine-sweeping still required, businesses must brace for continued shipping delays, inventory adjustments, and elevated freight costs in the near term.

June 18, 2026

WBAP News

Dallas/Ft. Worth

The Logistical Logjam:

500 Ships and a Massive Backlog

The physical reopening of the Strait of Hormuz is only the first step in a long, complex recovery process. Over the course of the months-long shutdown, a massive backlog of roughly 500 cargo vessels has accumulated, leaving trillions of gallons of oil and critical commercial goods stranded at sea. Clearing this bottleneck will require unprecedented coordination, and operations cannot resume overnight.

Furthermore, the maritime environment remains hazardous. Before cargo ships can safely navigate the waterway, authorities must ensure that mines laid earlier this year are fully cleared. As Michelle Schulz noted during a recent interview on WBAP Radio, Dallas-Fort Worth:

“It’s going to take some time… Keep in mind that ships have been stuck for over 100 days, so beginning operations again is not going to be a quick fix. Assuming that an agreement is reached and that the Strait does open, there are many things that still need to be done. For example, clearing mines that were laid earlier on this year.”

Because of these safety imperatives, maritime tracking data suggests that it will take weeks, if not months, for the backlog to entirely dissipate and for standard shipping schedules to normalize.

Shifting Strategies: How Importers and Exporters are Adapting

The prolonged instability in the region has forced global businesses to fundamentally re-evaluate their supply chain resilience. Relying on a single, vulnerable transit route is no longer a viable strategy, leading many companies to explore alternative—and often much costlier—routes, such as circumnavigating the African continent.

To mitigate ongoing delays and safeguard their operations, proactive importers and exporters are utilizing specialized customs and trade mechanisms to manage their cash flow and inventory. Michelle Schulz explained how companies are currently navigating these choppy waters:

“Our clients are navigating how they’re going to ship and the shipping routes. They’ve been exploring alternate routes and, in addition to that, experiencing delays… Some are looking at mechanisms like bonded warehouses, foreign trade zones, and there’s actually no great solution, to be honest. There’s no perfect solution. But companies are trying to do their best to strategize to minimize the damages on delays and extra expenses.”

Ultimately, these extended routes and strategic pivot points come with a price tag. Higher operational expenses and freight fees will continue to trickle down the supply chain, impacting both corporate bottom lines and retail consumers alike.

Mitigate Your Trade Risks

Navigating global supply chain disruptions requires proactive legal and logistical strategy. Whether you need to review your current shipping contracts, evaluate force majeure clauses, or leverage trade programs like Foreign Trade Zones (FTZs) and bonded warehouses to protect your inventory, Schulz Trade Law is here to help.

Contact Schulz Trade Consutling Today for a Comprehensive Strategy Consultation!