The Fox News Rundown Business Rundown: The Supreme Court’s Tariff Blow & What’s Next for American Business?
Feb 23, 2026
Farooq Kathwari, Chairman and CEO of Ethan Allen — furniture executive who prioritized nearshoring and domestic manufacturing. Victor Owen Schwartz, owner of VOS Selections — wine importer who sued over emergency tariff powers. They discuss the Supreme Court tariff ruling, its cash‑flow hit on businesses, who may get refunds, and how companies are reshaping supply chains and pricing.
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Small Importer Became Lead Plaintiff After Seeing Industry Harm
- Victor Owen Schwartz recounts joining the lawsuit after contacting law professor Ilya Somin about industry harms from the IEPA tariffs.
- He framed the wine and spirits trade as a canary in the coal mine, saying he didn't know IEPA until the tariffs hit his business hard.
Tariffs Function As Immediate Cash Flow Shock
- Schwartz explains tariffs act like an upfront tax that destroys cash flow for importers, forcing inventory, staffing, and supplier changes.
- He says a 15% tariff plus currency moves felt like a ~30% cost increase while price hikes were only 7–8%.
Reduce Inventory And Reevaluate Suppliers To Survive Tariff Shocks
- Schwartz describes business responses: cut inventory, drop slow suppliers, and avoid raising prices fully because demand suffers.
- He warns these moves reduce product choice and growth capacity for small distributors.