Tuesday, 24 February, 2026
The Drinks Business, James Bayley
The relief may be short-lived, however, as Donald Trump moves swiftly to impose fresh levies under a seldom-used 1974 trade law.
The US Supreme Court has struck down tariffs on imported wines in a 6 to 3 decision that curtails the use of emergency powers to impose sweeping trade measures. According to the ruling in Learning Resources, Inc. v. Trump, the court found that the International Emergency Economic Powers Act of 1977 did not authorise broad-based tariffs without clear congressional approval.
The decision brings to an end levies of between 15-25% that have weighed on the international wine trade for several years. Those tariffs formed part of a broader regime introduced last year under the 1977 statute, known as the IEEPA, which the court determined had been used beyond its intended scope.
Trump's response
Within hours of the judgment, Trump said he would replace the scrapped measures with a 10% levy on all goods entering the United States. Speaking after the ruling, he said the new tariffs would be imposed under Section 122 of the Trade Act of 1974, a provision that has never previously been used in this way.
On Saturday, he wrote on Truth Social that the rate would be increased to 15 per cent, the maximum permitted under that statute. According to the BBC, Section 122 allows such tariffs to remain in place for around five months before the administration must seek congressional approval.
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