Mulch around a tree is a good thing. It will help retain some moisture. It will help hold back the weeds. Your trees will grow better not having to compete for nutrients with weeds. Wood mulch does not take nitrogen out of the soil as a lot of people say. If you incorporate (plow/till in) it may, but not as a surface bedding. It wouldnt hurt to hit the sod with roundup first, but a thick enough mulch bed should slow most sod. Remember dont build what most landscapers call mulch volcanos. 8-10 inch mounds around a tree, then tapering back down towards the trunk. These huge volcanos can also be a home for mice, etc.
I have around 6000 landscape trees. 5000 spruce and 1000 deciduous.
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