Wine Importer Wins Tariff Lawsuit
A New York City wine importer just won a landmark lawsuit against U.S. government tariffs imposed during the Trump administration. The victory could lower costs and expand access to rare wines for collectors and high-end restaurants across the country.
The lawsuit was fronted by Victor Schwartz, the owner of a small, family-run New York importer named VOS Selections. He became the lead plaintiff in a case filed by the Liberty Justice Center, arguing that the president had overstepped his authority by unilaterally imposing the tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. The Supreme Court, in a 6-3 decision, agreed that the IEEPA was used beyond its intended scope and did not authorize broad-based tariffs without explicit congressional approval. This ruling invalidates levies of 15-25% that have impacted the international wine trade for several years. For his part, Schwartz said his company had paid at least six figures in extra tariffs since April 2025. The original 25% tariff, imposed in 2019, targeted still wines under 14% alcohol from France, Germany, Spain, and the UK. This was part of a wider trade dispute with the European Union concerning subsidies for aerospace companies. The tariffs caused significant disruptions, increasing costs for importers and distributors, which were ultimately passed on to consumers. The ruling could lead to more than $134 billion in refund claims for importers across the United States. However, the legal and logistical path to securing these refunds remains to be seen. The decision has been met with relief by many in the wine and spirits industry, who see it as a restoration of clarity regarding executive authority. Within hours of the Supreme Court's decision, former President Trump announced he would use a different law, Section 122 of the Trade Act of 1974, to impose new levies. This provision, which has rarely been used, allows for tariffs of up to 15% for a maximum of 150 days before requiring congressional approval. This move has created fresh uncertainty for the industry. The constant threat of tariffs has forced many in the hospitality industry to adapt. Some importers pre-ordered up to a year's worth of wine to avoid the price hikes, while others have started looking to replace European brands with wines from South Africa or South America. The instability has made long-term strategic planning difficult for restaurants and importers alike.
