While many more recognisable names had much bigger stakes in the Supreme Court of the United States (SCOTUS) decision on President Donald Trump’s sweeping global tariffs, it was small business owners and not large corporations that led the fight, a CNN report noted.
The lawsuit’s main plaintiff Victor Schwartz, owner of a New York-based wine import business called VOS Selections, became the hero that America needed — even while the major corporations and their famed CEOs took a back seat, it added.
The outcome, however, has benefitted all (big and small businesses alike). American retail major Costco is among those who have lined up preemptively for refunds from the US government after SCOTUS overturned Trump’s International Emergency Economic Powers Act (IEEPA) of 1977-based tariffs on 20 February.
What did the Supreme Court say in tariffs case?
Dubbed as “among the most significant in American history”, SCOTUS dealt a major blow to Trump’s aggressive global trade policy. This is Trump’s biggest legal setback since returning to the White House last year.
With a 6-3 majority, including judges appointed by the President, the court ruled that Trump’s tariffs imposition exceeded his legal authority. Notably, IEEPA is a national emergency law and limit the scope of POTUS’ powers.
According to economists at the Penn-Wharton Budget Model (PWBM), the judgement has also opened a path for refund claims worth over $175 billion on the more than $133 billion collected in tariffs so far.
Small business owners on frontlines against tariffs
Schwartz became the face of the case but was initially hesitant to be the lead plaintiff, he told CNN in an interview after the SCOTUS ruling. He stepped up to the role as “last line of defense” after joining other small business owners represented by the Liberty Justice Center, a public-interest law firm, the report said.
The suit was filed by Liberty on 14 April 2025 titled VOS Selections, Inc. v. Trump and consolidated cases from 12 states, including educational supply company Learning Resources, it added.
Schwartz said he was under “constant attack” through emails and text and was helpless. “It’s a little ugly. I guess it could be uglier. We keep our doors locked at the office,” he told the publication.
No stranger to the US tariff codes — VOS imports wines and spirits from 16 countries — Schwartz’s business has suffered due to constant tariff fluctuations under Trump. For example, he threatened 50% tariffs on European Union imports, and 200% tariffs on French wines and Champagnes, among other things.
Schwartz noted that Trump’s so-called ‘Liberation Day’ (when he first imposed tariffs in April), has made the economic environment “very unhealthy”.
“The economic environment now, especially in my industry, certainly is very unhealthy. We had to go through every item in our book over since ‘Liberation Day,’ I think, at least four times. We can’t just raise our prices, and we just can’t pay it, unlike big companies that can just write a check,” he said, adding that since April, VOS has paid “at least six figures in tariffs”, the report said.
What’s in the future as Trump looks to impose other tariffs?
Schwartz did acknowledge that Trump could impose other tariffs still — he already signed an executive order for 10% global tariffs on 20 February and raised this to 15% on 21 February — but felt that other provisions could limit the scope and mandate deadlines.
He also agreed that it was fearful standing against one of the most powerful men in the world — bigger names have not been spared i.e. Jeff Bezos and Jamie Dimon. “We try to tamp down our fear but still recognize the challenges of what’s out there,” he told the publication.
What kept him going? Positive support from other businesses across the US. Plaintiff Rick Woldenberg, CEO of Learning Resources told CNN he wanted his name in the lawsuit: “I didn’t do anything wrong.”
Schwartz told CNN he does not mind that corporates benefit from his risk, noting: “So it takes a little match to start the fire. Okay, I’ll take that. I’m not going to feel badly about that. I’m going to feel proud about that.”
How has Donald Trump reacted to SCOTUS order on tariffs?
As of 21 February, Trump said he is raising global tariffs to 15% under Section 122 of the Trade Act of 1974. There were no details available on the White House official website till time of writing.
Notably, Section 122 allows for a temporary import surcharge (up to 15%) for 150 days to address balance-of-payments deficits. However, a Bloomberg report noted that any further extensions require Congressional approval.
Meanwhile, duties under section 232 of the Trade Expansion Act of 1962 (National Security); and section 301 of the Trade Act of 1974 (Unfair Trade), remain unchanged. And, the Office of the United States Trade Representative has been directed to use its section 301 authority to investigate certain unreasonable and discriminatory acts, policies, and practices that burden or restrict US commerce.
