U.S.-Based Orange Juice Importer Sues Over Trump's 50% Tariff on Brazilian Goods

New York Times

6 days ago

A U.S.-based juice company is suing over President Trump's pledge to impose a steep 50 percent tariff on Brazilian imports starting next month.
Johanna Foods Inc., a major importer of orange juice, filed a lawsuit on Friday in the U.S. Court of International Trade in New York, saying that the measure, announced in a July 9 letter from Mr. Trump to President Luiz Inácio Lula da Silva of Brazil, threatened to upend its business and sharply drive up prices for American consumers.
Mr. Trump has used tariffs aggressively to shape trade policy. In justifying the tariff on Brazil, he cited factors including what he called an unfair trade relationship and a 'witch hunt' trial against Brazil's former right-wing president, Jair Bolsonaro, a close ally.
Johanna Foods' complaint argues that such factors do not meet the legal threshold for invoking the International Emergency Economic Powers Act of 1977, which gives the president broad authority to regulate international economic transactions during a declared national emergency.
'There is no unusual or extraordinary threat,' the company said in the complaint, pointing to the lack of a formal executive order or declaration of national emergency. The complaint also said that the letter to Mr. Lula did not constitute an executive order.
The complaint said the tariffs would increase Johanna Foods' annual import costs by $68 million and lead to retail price hikes of up to 25 percent. Johanna Beverage Co., a related company based in Washington State, is also listed as a plaintiff.
Orange juice prices are already high. In June, the price of frozen orange juice concentrate was 5.5 percent higher than in June 2024, according to the U.S. Bureau of Labor Statistics.
Brazil, the world's largest exporter of orange juice, supplies well over half of the fresh orange juice consumed in the United States, according to Agriculture Department figures. Brazil is also a major exporter of coffee to the United States.
The threatened tariff comes amid an extraordinary pressure campaign against Brazil as it prosecutes Mr. Bolsonaro on charges of attempting a coup to overturn his loss in the 2022 election.
Mr. Lula said in a recent statement that Brazil would not be 'tutored' by anyone and would retaliate against tariffs on Brazilian imports, which will take effect on Aug. 1 unless a trade deal is reached.
A federal appeals court is set to hear arguments later this month on a case challenging Mr. Trump's use of the International Emergency Economic Powers Act to impose tariffs, but has allowed the administration to enforce global tariffs for now.