US-based orange juice importer Johanna Foods has sued the Trump administration over proposed tariffs on Brazilian goods, including orange juice, which could lead to a significant price hike for American consumers.
The company alleges that President Donald Trump’s July 9 letter to Brazil’s President Luiz Inácio Lula da Silva announcing the tariff threatens the national orange juice supply chain and would cause a nearly $70 million hit to its business. Johanna Foods supplies nearly 75% of private label not-from-concentrate orange juice customers in the US and relies on Brazilian imports for more than half of its American consumption.
If tariffs are imposed, the company estimates that costs could surge by an additional $68 million, leading to a 20-25% price hike for consumers. The added costs also pose an “immediate and unmanageable financial burden” that would force Johanna Foods to raise prices, imperil its workforce of 685 people, and impact the US national security.
The Trump administration has not officially formalized the 50% tariff on Brazil, citing a lack of a mechanism for how it would be levied. The company claims that the tariff is unconstitutional and requests the court to declare it as such. The White House defends the action, stating that the executive branch has been granted tariff powers by Congress to “level the playing field” for American workers and safeguard national security.
This development comes amid a broader trade dispute between the US and Brazil, with the US running a $6.8 billion trade surplus with Brazil last year.
Source: https://edition.cnn.com/2025/07/22/economy/us-orange-juice-importer-brazil-tariff-lawsuit