Tag: TexasBusiness

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.

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.”

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.

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.”

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.

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.