Will Wine Importer’s Lawsuit Impact Trump’s Trade War?

A recent federal court ruling has created significant implications for the ongoing trade tensions between the U.S. and various nations, particularly concerning wine. On May 28, 2025, a three-judge panel from the U.S. Court of International Trade in Manhattan determined that President Donald J. Trump overstepped his authority in implementing universal 10 percent tariffs on nearly all foreign countries. This decision halts the tariffs that may have raised prices on imported wines in American markets.

These tariffs, which included those announced on April 2, fell under the President’s emergency economic powers and were part of broader actions against certain countries, including China, Mexico, and Canada, aimed at combating fentanyl imports. However, the next day, a federal appeals court granted the Trump Administration a pause on the lower court’s decision, meaning the tariffs will remain in effect while the Administration appeals the ruling.

The case stemmed from a lawsuit filed by a small wine importer, VOS Selections, headquartered in New York. Founder Victor Schwartz reflected on the ruling, stating it represented a victory for small businesses and expressed confidence in the legal process to challenge the government’s actions all the way to the Supreme Court if necessary.

The central issue of the lawsuit revolves around the International Emergency Economic Powers Act (IEEPA)—a 1977 law that allows the President to regulate financial transactions in response to national emergencies. VOS and other plaintiffs claimed the administration improperly utilized this law to impose tariffs, as it does not specifically mention tariffs and does not grant the President powers to enact such measures without congressional support.

Despite the ruling cast in favor of VOS Selections, an attorney for the Trump Administration remarked that it is not within the jurisdiction of unelected judges to determine how to handle national emergencies, insinuating that the Administration would exercise all available executive powers to protect the country.

The uncertainty surrounding the tariffs continues for many importers, including VOS, especially with ongoing negotiations between the White House and various foreign governments. If agreements are not finalized by July 9, further tariffs on wines from the European Union could escalate to 20 percent or more.

For further exploration of how trade wars and tariffs impact the wine industry, visit Wine Spectator’s Trade War Tariffs section.

About the Author: Chris Lehoux

Meet Chris Lehoux, an experienced wine connoisseur and dedicated blogger with a deep passion for all things wine-related. With years of expertise in the industry, Chris shares insightful wine reviews, valuable wine tasting tips, expert pairing advice, and captivating tales of vineyard visits. Join Chris on a journey through the world of wine, where every sip is an adventure waiting to be savored!