‘Last line of defense’: Not major corporates, small business owner Victor Schwartz took on Trump’s tariffs and succeeded
While more prominent names have a much bigger stake in the Supreme Court of the United States (SCOTUS) ruling on President Donald Trump’s sweeping global tariffs, it is small business owners, not big corporations, who are leading the fight, according to a CNN report.
The main plaintiff in the case, Victor Schwartz, owner of a New York-based wine importing company called VOS Selections, has become the hero America needs, even as big corporations and their famous CEOs remain in the background.
But the result benefited everyone (both large and small businesses). American retail giant Costco is among those lining up to receive refunds from the US government after SCOTUS repealed Trump’s 1977 International Emergency Economic Powers Act (IEEPA) on February 20.
What did the Supreme Court say in the tariff case?
SCOTUS, known as “among the most important in American history,” dealt a major blow to Trump’s aggressive global trade policy. This is Trump’s biggest legal defeat since he returned to the White House last year.
By a 6-3 majority, including judges appointed by the president, the court ruled that Trump’s tax enforcement exceeded his legal authority. Notably, IEEPA is a national emergency law and limits the scope of POTUS’s powers.
The decision also opened a path for refund claims of more than $175 billion of the more than $133 billion in taxes collected so far, according to economists at the Penn-Wharton Budget Model (PWBM).
Small business owners are on the front lines against tariffs
In an interview with CNN after the SCOTUS decision, he said Schwartz was the face of the case but was initially hesitant to become lead plaintiff. He stepped into the “last line of defense” role after joining other small business owners represented by the Liberty Justice Center, a public interest law firm, the report said.
The lawsuit was filed by Liberty on April 14, 2025 with VOS Selections, Inc. v. It was stated that it was filed under the title Trump and that there were consolidated lawsuits from 12 states, including the education supply company Learning Resources.
Schwartz said he was under “constant attack” through emails and texts and was helpless. “It’s a little ugly. I think it could be uglier. We keep our doors locked in the office,” he told the publication.
No stranger to U.S. tariff rules (VOS imports wine and spirits from 16 countries), Schwartz’s business has been hurt by constant tariff fluctuations under the Trump administration. For example, it has threatened, among other things, a 50% tariff on European Union imports and a 200% tariff on French wines and champagnes.
Schwartz noted that Trump’s so-called ‘Emancipation Day’ (when he first imposed tariffs in April) made the economic environment “very unhealthy.”
“The current economic climate is absolutely very unhealthy, especially in my industry. I think we’ve had to review every item in our book at least four times since ‘Emancipation Day.’ Unlike big companies that can just write checks, we can’t raise our prices and we can’t afford to pay,” he said, adding that VOS has been paying “at least six figures in tariffs” since April.
What will happen in the future as Trump tries to impose more tariffs?
Schwartz acknowledged that Trump could still impose other tariffs — he already signed an executive order for 10% global tariffs on Feb. 20 and increased that to 15% on Feb. 21 — but felt other provisions could limit the scope and authority deadlines.
He also admitted that standing up to one of the most powerful men in the world was scary; Bigger names like Jeff Bezos and Jamie Dimon weren’t spared either. “We try to suppress our fear but still acknowledge the challenges of what is out there,” he told the publication.
What keeps him going? Positive support from other businesses across the US. Plaintiff Rick Woldenberg, CEO of Learning Resources, told CNN he wanted to be named in the lawsuit: “I didn’t do anything wrong.”
Schwartz told CNN that he doesn’t care if companies take advantage of his risk and said: “So it takes a small match to start the fire. OK, I’ll take that. I won’t feel bad about it. I’ll be proud of it.”
How did Donald Trump react to SCOTUS order on tariffs?
As of February 21, Trump said he would increase global tariffs to 15% under Section 122 of the 1974 Trade Act. No details were available on the White House’s official website at the time of this writing.
Specifically, Section 122 allows a temporary import surcharge (up to 15%) for a period of 150 days to address balance of payments deficits. But a Bloomberg report noted that any further extension would require Congressional approval.
Meanwhile, duties under Section 232 of the Trade Expansion Act of 1962 (National Security); and Article 301 of the Commercial Code 1974 (Unfair Trading) remains unchanged. And the Office of the United States Trade Representative is directed to use its section 301 authority to investigate certain unreasonable and discriminatory acts, policies, and practices that restrict or restrict U.S. commerce.
