Wine Importer’s Lawsuit: A Potential Setback for Trump’s Trade War

A federal court ruled on May 28, 2025, that President Donald J. Trump overstepped his authority when imposing a universal 10 percent tariff on nearly every nation, which raised concerns about increased prices for imported wine in the U.S. The U.S. Court of International Trade in Manhattan halted the tariffs, which Trump had enacted under emergency economic powers.

These tariffs were part of Trump’s broader trade measures initially announced on April 2, which also included tariffs targeting China, Mexico, and Canada aimed at combating fentanyl imports. However, shortly after the ruling, an appeals court allowed the Trump Administration to temporarily maintain these tariffs while it appeals the decision.

VOS Selections, a New York-based wine importer, is the plaintiff in the case. Founder Victor Schwartz hailed the ruling as a victory for small businesses and expressed confidence in their legal fight, stating they would pursue the case to the Supreme Court if necessary.

The lawsuit challenged the legality of using the International Emergency Economic Powers Act (IEEPA) for tariff imposition. Critics argue that the IEEPA, which grants the president broad powers for regulating financial transactions in a national emergency, does not explicitly allow for tariffs. Historically, presidents have not used this law for such purposes. The courts expressed skepticism about Trump’s justification of persistent trade deficits as a valid emergency.

The White House, however, vowed to continue the fight for the tariffs, stating it is not up to judges to determine how to address a national emergency. The appellate court’s decision leaves the future of these tariffs uncertain. If the lower court’s decision is ultimately upheld, those businesses that paid the tariffs might be entitled to refunds.

The uncertainty surrounding these tariffs has left many wine importers in a difficult position, as they have faced fluctuating rates. The situation is further complicated by ongoing negotiations with various nations, with potential tariffs on wines from the European Union rising to 20 percent or more if no agreements are reached by July 9.

For past coverage on trade wars and wine tariffs, visit Wine Spectator.

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!