Tariff Impact on Orange Juice Prices
President Trump’s proposed tariffs on Brazilian imports could drive up orange juice costs at major U.S. supermarkets—Aldi, Walmart and Wegmans—by as much as 25%, warns a leading U.S. importer.
Johanna Foods’ Legal Action
Johanna Foods, a New Jersey–based importer and seller of not‑from‑concentrate orange juice, has sued the Trump administration. The company claims that a threatened 50% tariff on Brazilian goods will inflict nearly a $70 million loss on its business and steep price hikes for customers.
Questioning Tariff Authority
Filed July 18 in the U.S. Court of International Trade in New York, the complaint argues that Trump’s July 9 letter to Brazil’s President lacked the force of a formal executive order and failed to cite any legal authority for imposing the 50% duty.
Supply‑Chain Significance
Describing itself as a “cornerstone of the national orange juice supply chain,” Johanna Foods and its Spokane‑based subsidiary supply roughly 75% of private‑label, not‑from‑concentrate orange juice sold in the United States.
Brazil’s Export Dominance
Brazil produces 75% of the world’s orange juice exports and supplies more than half of the orange juice consumed in the U.S., according to USDA figures—making any new tariff especially disruptive.
Estimated Cost Surge
Johanna Foods calculates that a 50% tariff on its Brazilian imports would add $68 million in annual costs—exceeding its highest yearly profits over three decades—and that importers who front these duties pass them “dollar for dollar” onto companies.
Consumer and Workforce Consequences
Faced with an “immediate and unmanageable financial burden,” the company warns it would have to raise retail prices by 20–25%, and that the surcharge could jeopardize its 685‑employee workforce in New Jersey and Washington.
Broader Implications and Responses
With courts already finding similar tariffs unconstitutional—but allowing them to remain in effect pending appeal—Johanna Foods seeks a declaration that the Brazil tariff exceeds presidential authority under the International Emergency Economic Powers Act and an injunction against its enforcement.
