Victor Schwartz, an entrepreneur and wine enthusiast, was in the midst of preparing dinner, with a bottle of Vermentino wine uncorked, when he received an unexpected and significant update on Wednesday evening. A federal trade court had just overturned President Donald Trump's sweeping “Liberation Day” tariffs, a development that sent shock waves through global markets in recent weeks. Schwartz's small but impactful wine-importing business, V.O.S. Selections, based in New York City, was at the forefront of the lawsuit challenging these tariffs.
“I did not start this business 39 years ago with the idea of suing the president of the United States,” Schwartz expressed in an interview with The Washington Post. His goal was simple: to discover “interesting, delicious wines, bring them back here, and foster a community of like-minded individuals who share a passion for quality wines.” However, the potential impact of Trump's tariff plans posed an existential threat to the business he had nurtured for nearly four decades. Determined to protect his livelihood, Schwartz decided to take a stand.
The surprising ruling from the U.S. Court of International Trade initially halted the tariffs, but just a day later, the U.S. Court of Appeals for the Federal Circuit temporarily stayed this decision. This legal back-and-forth has thrust V.O.S. Selections into the limelight, and Schwartz remains undeterred. “I was elated with some caution. I knew that it was not the end of the road,” he remarked about the trade-court ruling. “It was a great victory, and it was such a clear, unanimous, strong opinion. That’s what was very satisfying about it.” He savored the moment with a sip of Vermentino, reflecting on the finer aspects of life amidst the turmoil.
V.O.S. Selections is not just a small operation; it employs 19 individuals and imports a diverse array of wines, spirits, and sakes from 16 countries, including Italy, France, and South Africa. Schwartz warned that Trump's tariffs could cripple his ability to plan import orders and jeopardize vital relationships with wholesale customers and farmers. “We have to come up with this cash flow somehow. That's not a little bit of money — that's thousands and thousands of dollars on each container,” he stated.
Schwartz highlighted that the wine his company imports is unique, as certain grape varietals can only thrive in specific geographical regions, such as Chianti in Tuscany, Italy. The essence of these wines is inextricably tied to their origins, making them irreplaceable in the domestic market. This sentiment is echoed across the broader wine industry, where the National Association of Wine Retailers has urged the Trump administration to reconsider the extensive tariffs, emphasizing the potential for significant revenue losses, layoffs, and even business closures.
In response to the lawsuit, the Trump administration argued that the claims of harm were merely “speculative,” suggesting that they only indicated a “possibility” of future economic loss. They contended that Trump held the authority to impose broad tariffs on imported goods under the 1977 International Emergency Economic Powers Act, which they believed justified the tariffs as a necessary measure to address trade deficits seen as a national emergency. However, the trade court's three-judge panel firmly disagreed, stating that the law does not grant such unbounded authority to the president.
The implications of Trump's tariffs extend beyond the wine industry, affecting various sectors including clothing and textiles. For example, Terry Precision Cycling, a Vermont-based company specializing in women’s cycling attire, is a co-plaintiff in the lawsuit. The company has faced staggering tariff costs, with unplanned tariffs reaching $25,000 in 2025 and projections of up to $1.2 million in 2026. This financial burden threatens the viability of their business and reflects a widespread sentiment among small businesses facing similar challenges.
Numerous small businesses from diverse industries have rallied in support of the plaintiffs, citing the detrimental effects of sudden tariff increases and the uncertainty surrounding trade policies. They expressed that such financial pressures pose immediate and existential threats to their operations, making it nearly impossible to plan for the future.
The recent court decisions have sparked strong reactions from the White House. Following the trade court's ruling, Trump advisor Stephen Miller lamented on social media, describing the situation as “judicial tyranny.” Trump himself took to Truth Social to celebrate the appeal court's temporary stay, labeling the tariffs “desperately needed” and dismissing the trade court’s ruling as “wrong and political.”
As the appeals court prepares to deliberate on the matter, Schwartz has received an outpouring of support from fellow small business owners and even Trump voters. “This last decision has brought so much emotion, so much story about tariffs to light,” Schwartz noted, suggesting that the tide may be turning in the court of public opinion against the administration's tariff policies.
