Two orange juice importers argue the tariff on Brazil will slash profits and drive up retail prices
07/22/2025
Two U.S. importers have taken the first step in challenging Donald Trump’s proposed sanctions against Brazil, laying out arguments that could pave the way for similar actions by other companies and intensify pressure on Washington.
On July 18, orange juice importers Johanna Foods and Johanna Beverage Company filed a request for declaratory and injunctive relief with the U.S. Court of International Trade in New York, aiming to block Trump’s threat to impose 50% tariffs on Brazilian goods.
Based in Flemington, New Jersey, the plaintiffs are premium food manufacturers, producers, and distributors of fruit juices, beverages, and yogurts.
In the lawsuit, the companies argue that the proposed tariffs—set to take effect on August 1—exceed the president’s authority under the International Emergency Economic Powers Act and constitute an unconstitutional delegation of power.
Robert Facchina, executive director of both companies, stated in a declaration attached to the 150-page lawsuit that the tariff would harm the group financially, increase retail prices by roughly 20% to 25% for consumers, and could trigger layoffs in the U.S.
“Brazil’s tariff will result in a significant, and perhaps prohibitive, price increase on a staple of the American breakfast,” the importers warn.
The filing also challenges the rationale behind Mr. Trump’s proposed tariff, citing his reference to “the way Brazil treated former President Bolsonaro,” “Brazil’s insidious attacks on free elections and the fundamental rights of Americans to freedom of expression,” and “the long-standing and very unfair trade relationship.”
The suit notes that Mr. Trump’s letter does not cite any legal or statutory basis for imposing a 50% tariff against Brazil. It asserts that the letter “does not constitute proper executive action, is not an Executive Order, does not refer to or incorporate any Executive Orders, or modify or amend any existing Executive Order.”
Moreover, the document points out that Mr. Trump “has not identified any unusual or extraordinary threat originating outside the U.S. that is a threat to the national security, foreign policy, or economy of the U.S.,” nor has he “declared a national emergency as the basis for imposing the Brazil Tariff.”
The two importers claim that Mr. Trump’s imposition of a 50%—or higher—tariff on Brazilian orange juice will cause substantial and immediate financial harm to both their companies and American consumers.
Brazil is the world’s leading producer of orange juice and the second-largest supplier to the U.S., accounting for more than half of all orange juice sold in the American market.
“The 50% tariff imposed on Brazil by the Trump administration will significantly affect the petitioners’ businesses, resulting in an estimated additional cost of at least $68 million over a twelve-month period, which exceeds any single year of profits in the petitioners’ 30-year history,” the importers state in their complaint.
They argue that the imposition of the tariffs undermines their ability to plan, fulfill production requirements, and manage cash flow, “as the additional costs impose an immediate and uncontrollable financial burden that our current profit margins cannot absorb.”
Without “relief from these tariffs,” the importers warn they will face potential layoffs of unionized employees, reduced production capacity, and an existential threat to the long-term viability of their operations. Together, the companies support nearly 700 jobs in the U.S. and make significant contributions to the economies of New Jersey and Washington.
They further argue that the increased costs associated with the so-called Brazil Tariff will compel them to raise prices for customers, leading to an estimated 20% to 25% hike in retail prices for consumers.
The filing also highlights the steep decline in domestic orange juice production—particularly in Florida—which has dropped by more than 95% over the past 25 years due to citrus greening disease, hurricanes, and urban sprawl, rendering the U.S. supply insufficient for its production needs.
According to the plaintiffs, Florida’s orange harvest for 2025 is projected to fall by approximately 33% compared to last year, marking the lowest output in 95 years. Brazil and Mexico now account for roughly 95% of U.S. orange juice imports.
In conclusion, the companies assert that the imposition of the Brazil Tariff—particularly the 50% rate—is unlawful and urge the court to bar the Trump administration from enforcing the measure.
*By Assis Moreira, Valor — Geneva
Source: Valor International
https://valorinternational.globo.com/