Victor Schwartz
Appearances
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
I was literally preparing dinner. I was looking for a recipe for linguine and clams. And I walked over to the computer. You know, I'd looked at one before. And then I got an email from Sarah Albrecht, who is the head of the Liberty Justice Center, and the wonderful people who have taken our case pro bono. And they're the ones doing the heavy lifting, not me. I'm just the legal spokesmodel.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
So I read that. And of course, I'm completely confused because I don't know the legalese or the summary judgments. Is that good? Bad? I don't know. I immediately got in touch with a friend of mine who's a lawyer. He explained it, that it was very good. So just kind of been off to the races.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
Because I'll tell you, I'll tell you, it is also strange and backdoor. It's like unintentional. This is in March. We're at brunch and we're talking about the tariffs because that was on everyone's mind. We're having a conversation with a cousin of my wife's. And He brought up the fact that his former law professor was bringing a case against the tariffs.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
And I said, wow, this is great because I wanted to give my two cents about what was going on in my business and in the wine business. You know, I got in touch with him right away and he got right back to me, got right back to me. And we had a wonderful conversation. I told him my tales of woe about being in the wine business and an importer in the world of threatened tariffs.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
And he said, OK, fine. That sounds good. And then three days later, they asked if I would be the lead plaintiff. And that's when I got nervous. Well, what does that entail? Yeah. Let me talk to my wife and kids. And of course, they were all kind of nervous because the administration is known for being vengeful. And, you know, we're a heavily regulated business.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
We have a lot of business in front of the government, whether it's importation, FDA rules, et cetera, et cetera, et cetera, label requirements. So it's like, well, should I do this? Should I not? You know, I don't really want to stick my neck out. And then I thought about all the billionaires that I'm just so pissed off about doing nothing. And I'm going, we're all sitting around.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
We're all complaining. We're all saying, hey, what can we do about this? You know, what can I do? Everyone's feeling powerless. And I said, this just landed on my plate. If I don't step up, then how can I expect anybody else to? And I just felt it was incumbent upon me to do it and let the chips fall where they may.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
Well, first of all, understand, you know, number one, we're a very heavily regulated business. So, for instance, we have to post our prices, our discounts, fixed with the state over a month in advance before we start selling. And we can't change them. So if, like, I've got a five-case price, $120 a case or something like that, I can't say, oh, it's a tariff. I'm going to change that to 150.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
It's done. It's fixed. So the tariff liberation, quote unquote, liberation day, I call it strangulation day. So we had to really jump on this right away and try to make some decisions in a very unclear situation. So there's that. Plus, where is the tariff money going to come from? Those tariffs have to be paid up front.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
As I put it, it's worse than a tax because a tax usually happens after the event. This happens before anything, before we sold a bottle. So even if our commander in chief says, it's not a big deal, just raise your prices. If I raise the price on a container, I don't see the revenue from that container for months down the road. We have to sell it all. We have to collect it all.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
So where is that capital going to come from? It's a real problem. cash flow killer. That's the real challenge. And when you're a small business, cash flow is always a challenge.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
I decided I had to step up. Yeah. I mean, it came to me in a sense. You know what I mean? I wasn't like I was looking for a law case. I want to be very clear about that.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
I mean, when I first read the complaint, VOS Elections Inc. versus Trump et al., I laughed like a lunatic. I mean, in a sense, this is so crazy. This is not what I signed up for when I created my company 39 years ago.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
I just wanted to find interesting wines that are really delicious, find a community of like-minded people on this side of the pond, and sell them these delicious wines and have a happy life. That's all I wanted to do. and not pay high tariffs for it. I am sure there are definitely some trade issues. I'm not, like, completely anti-tariff in some way.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
But the fact is, it was not necessary for our industry, and certainly not across the board.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
Like, don't count your chickens yet. I mean, I do think we're going to eventually win. We can't know. It'll probably go to the appellate court in D.C., right? That's the next step. We don't know how they will rule. Will the Supreme Court say, no, we're not going to touch it, or will they take it on? So many ifs. You can't plan on that. You can't plan on ifs.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
No, we're planning on the tariffs being with us for a while. That's the sad truth of it. But we'll still enjoy the win for the time being.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
Well, I was already in the middle of drinking it, but I had no problem finishing the bottle. And that was a beautiful Vermentino from Chateau de Roquefort, which is in Aix-en-Provence. You know, delicious wine. Went with my Vongole and Linguini very nicely. My wife and I toasted, and, you know, there you go.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
It has just been nonstop. I got a call from ABC News in the middle of dinner. They wanted to come over to my place, which kind of got me nervous because I thought they were some weirdos. I grilled them a bit. I hope they're real. I said, OK, well, meet me outside my building. I'm not letting you in my house. So that was fine. They were very nice people. And then I got a call from CNN in Hong Kong.
The Daily
Did a Wine Importer Just Sink Trump’s Trade War?
So that was crazy. And then the phone's been ringing and everybody wants to get my comment.