WSWA Welcomes High Court Move on Tariff Authority

The U.S. Supreme Court issued a decision today in the case of Learning Resources, Inc. v. Trump, ruling that the International Emergency Economic Powers Act (IEEPA) does not grant the president authority to impose broad-based tariffs without explicit approval from Congress. The 6-3 decision clarifies the limits of executive power in trade matters and reaffirms the central role of Congress in setting tariff policy.

The Wine & Spirits Wholesalers of America (WSWA), a national trade association representing wine and spirits distributors, welcomed the ruling. Francis Creighton, President and CEO of WSWA, said that certainty and predictability in trade policy are essential for wholesalers, as well as for restaurants, bars, retailers, and consumers. He stated that the Supreme Court’s decision restores clarity and helps stabilize an industry that relies on open markets and international partnerships.

The tariffs at issue included a 10% base tariff on most imports, with higher “reciprocal” rates applied to certain countries. For the beverage alcohol sector, these tariffs acted as direct taxes on American businesses and consumers. The increased costs affected every part of the supply chain and added pressure to hospitality businesses already facing economic challenges.

Many wine and spirits products are produced exclusively in specific regions around the world and cannot be replicated domestically. The tariffs disrupted established relationships between international producers and American wholesalers, leading to higher prices and uncertainty for small businesses across the United States.

WSWA has consistently opposed including beverage alcohol products in tariff disputes that are unrelated to the industry. The association supports fair, rules-based trade policies and has urged policymakers to seek negotiated solutions that protect U.S. economic interests without causing unintended harm to American businesses and workers.

Today’s Supreme Court ruling is seen by WSWA as an opportunity to focus on stable trade policies that support growth, protect jobs, and ensure consumers have access to a wide variety of wine and spirits products. The association says it will continue working with Congress and the Administration to promote long-term stability for the beverage alcohol sector.

WSWA represents more than 380 member companies in all 50 states and the District of Columbia. Its members distribute over 80% of all wine and spirits sold at wholesale in the United States. Founded in 1943, WSWA advocates for the interests of distributors and brokers throughout the country.