Johanna Foods Inc. sues U.S. government over 50% tariff on Brazilian imports

New Jersey-based fruit juice distributor and producer Johanna Foods filed a lawsuit against U.S. government agencies to stop the imposition of tariffs on orange juice imports from Brazil. The document was delivered on Friday at the U.S. Court of International Trade in New York.

The company argues the tariffs are unconstitutional and violate the International Emergency Economic Powers Act (IEEPA), which limits how and when the President can use emergency powers to regulate trade.

President Donald Trump announced his plan to impose a 50% tariff on all goods from Brazil in a July 9 letter posted on social media addressed to President Luiz Inácio Lula da Silva of Brazil.

The complaint states the announced tariffs would increase Johanna Foods’ annual import costs by $68 million, exceeding any single year's profits in the company's 30-year history. The document also details that financial strains resulting from the tariffs would force the company to cut staff, reduce production capacity, and increase retail prices up to 25%. 

When asked for further comment, Johanna Foods President and CEO Robert Facchina said he had nothing to add: "I guess next week we'll see the merits of our case."

Brazil is the world’s leading producer of orange juice (accounting for 75% of the world’s supply) and is the second-largest supplier of the beverage to the United States.

Unless the countries reach a trade deal, the tariffs are set to take effect August 1.

In marketing year 2023/24, Brazil exported 305,898 metric tons (MT) of fresh OJ to the world, of which 92,660 MT were exported to the United States and 76,912 MT to the European Union, according to the U.S. Department of Agriculture.