Johanna Foods sues Trump over planned orange juice tariffs

In the United States, Johanna Foods, a major importer of orange juice, has initiated legal action against the Trump administration regarding the proposed imposition of 50% tariffs on goods imported from Brazil. The lawsuit was filed in the U.S. Court of International Trade in New York, asserting that the tariffs, first mentioned in a letter dated July 9, threaten to significantly harm the company’s business model and result in increased prices for consumers. Johanna Foods claims that the anticipated tariffs would incur an additional cost of $68 million annually, which far exceeds the company's previous profits over the past three decades. As a key player in the national orange juice supply chain, Johanna Foods, together with its subsidiary Johanna Beverage Company, is responsible for supplying around 75% of private label not-from-concentrate orange juice in the U.S. economy. The company argues that the tariffs would directly complicate the supply chain for orange juice, as oranges sourced in Florida are primarily used for juice concentrate rather than the sought-after not-from-concentrate variety. Additionally, Florida's oranges are severely impacted by various factors including crop diseases, hurricanes, and urban development, which has led to diminished quality and quantity of the crop. The lawsuit contends that the stated legal grounds for the tariffs, linked to economic concerns and trade relationships, do not constitute an extraordinary threat necessitating such drastic measures under the International Emergency Economic Powers Act (IEEPA). Johanna Foods' complaint elaborates on the significant implications these tariffs could have on American consumers, predicting retail price hikes of between 20% and 25% for orange juice products. The company's position is that the tariffs have neither been officially enacted nor legally sanctioned and thus poses an unjustified threat to their operations. Furthermore, the complaint states that the product essential to their business model is not feasibly available from any other domestic supplier at the necessary quality or capacity. This lawsuit is part of a larger legal discourse, as another similar case, covering multiple state governments, has also been brought before federal courts questioning the legality of such tariffs, amplifying the dialogue surrounding presidential authority in regulating trade. The resulting uncertainty about the tariff policies and the broader implications for the U.S.-Brazil trade relationship have stressed the importance of clarifying the legal frameworks governing international tariffs, shaping the future landscape for the industry going forward.