Lawsuit Launch
Johanna Foods, a U.S. importer of not‑from‑concentrate orange juice, has filed suit in the U.S. Court of International Trade, challenging President Trump’s threatened 50% tariff on Brazilian imports.
Projected Price Hikes
The company warns that the tariff would drive retail orange juice prices up by 20%–25% at major chains like Aldi, Walmart and Wegmans.
Trump’s Tariff Notice
In a July 9 letter to Brazil’s President Lula da Silva, Trump announced the 50% duty effective August 1, citing Brazil’s treatment of former President Bolsonaro, alleged social‑media censorship, and trade‑deficit concerns.
Questioning Legal Authority
Johanna Foods contends Trump’s letter lacks any statutory grounding—no executive order, legal citation or declared emergency—to authorize these sweeping duties.
Supply‑Chain Significance
Supplying roughly 75% of U.S. private‑label not‑from‑concentrate orange juice, Johanna Foods and its Spokane subsidiary call themselves “cornerstones” of the national OJ supply chain.
Financial Impact
The importer estimates a $68 million annual cost increase—exceeding its highest yearly profits since 1995—because importers front all duties and recoup them “dollar for dollar” from Johanna Foods.
Consumer & Workforce Consequences
Faced with “immediate and unmanageable” costs, the company says it would pass tariffs onto consumers—hiking prices by up to 25%—and risk layoffs among its 700 employees in New Jersey and Washington.
Relief Sought & White House Response
The suit asks the court to rule the tariff beyond presidential power under the International Emergency Economic Powers Act and block enforcement. The White House insists the administration is lawfully using its trade authority to protect American workers and security.
