Time reported on Thursday that a family-run natural wine importer, VOS Selections, won a lawsuit in the U.S. Court of International Trade against the Trump administration, which ruled the Trump tariffs unconstitutional and “illegal” according to the BBC.
VOS Selections is based in New York and originated in 1987. Victor Owen Schwartz founded the company, and he currently runs it with his daughter, Chloë Syrah Schwartz. The company represents a variety of wines from an eclectic array of countries besides the usual suspects in France and Italy. The dynamic portfolio includes offerings from Morocco and Mexico.
During an interview with VinePair, Victor Schwartz claimed that he felt “elated” by the ruling.
“This is a win for my small business, along with small businesses across America — and the world, for that matter.”
Schwartz shared with VinePair that Trump’s “Liberation Day” tariffs put quite a bit of uncertainty and pressure on his business. The importer spent April 2 going through his portfolio trying to figure out how he would change the pricing for his wines.
“We were basically rubbing a crystal ball trying to make decisions,” Schwartz shared with VinePair. “We didn’t want to just raise prices 10 percent across the board. We’re partners with our customers and suppliers. We see ourselves as part of the chain and want to do the right thing.”
Some of the wines in the importer’s portfolio include Adobe Guadalupe, a natural winery based in Baja California, Mexico. With the Trump tariffs, the producer would have undoubtedly seen a significant price increase within VOS’s portfolio. VOS additionally represents Bodegas Henri Lurton, another winery based out of Baja California, founded by the Bordeaux legend behind Château Brane-Cantenac in Margaux.
How Trump Tariffs Stack The Odds Against Small Wine Businesses
Rising costs would be felt across the board with Schwartz’s portfolio, and his customers — restaurants and small retailers — would have to tackle the increased cost. Ultimately, the burden would be passed down to the consumer.
Larger wine conglomerates like Constellation face a significant advantage in the uncertain markets created by these tariffs. They can pivot and sell off major brands, keeping the long run in mind. In April, Constellation did exactly that and offloaded six wine brands within “the declining mainstream segment.” The deal gave the company $900 million.
Yet for smaller businesses, like VOS Selections, the stakes are significantly higher. Schwartz explained to VinePair that the opportunity “was kind of fate.” At a family brunch, Schwartz met a lawyer preparing a class action suit against the Trump administration, and he agreed to be the main plaintiff.
Yet Schwartz knows as far as the battle goes, this is only the beginning. At present, the Trump administration has appealed the ruling and CNBC reported that the court of appeals gave the President permission to pause the ruling of the lower courts.
“Even if we lose, we will do it another way,” said Trump Trade Advisor Peter Navarro.
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