President Trump’s promise to put a high 50 percent tariff on Brazilian imports beginning next month has prompted a lawsuit from a U.S.-based juice manufacturer.
Major orange juice importer Johanna Foods Inc. sued the U.S. Court of International Trade in New York on Friday, claiming that the measure, which was announced in a letter from Mr. Trump to Brazilian President Luiz Incio Lula da Silva on July 9, threatened to disrupt its operations and significantly increase prices for American consumers.
Mr. Trump has aggressively shaped trade policy through tariffs. He used what he saw as an unbalanced economic relationship and a witch hunt investigation against Brazil’s former right-wing president, erstwhile ally Jair Bolsonaro, as justifications for the tariff on Brazil.
The International Emergency commercial Powers Act of 1977, which grants the president extensive authority to control international commercial transactions during a declared national emergency, is allegedly not applicable in this case, according to Johanna Foods’ complaint.
Citing the absence of a formal executive order or proclamation of national emergency, the business stated in the complaint that there is no uncommon or extreme threat. The letter to Mr. Lula did not amount to an executive order, according to the complaint.
According to the complaint, Johanna Foods’ yearly import expenses would rise by $68 million as a result of the levies, and retail prices might rise by as much as 25%. A Washington State-based linked business, Johanna Beverage Co., is also named as a plaintiff.
The cost of orange juice is already high. According to the U.S. Bureau of Labor Statistics, the cost of frozen orange juice concentrate increased by 5.5% in June compared to June 2024.
According to data from the Agriculture Department, more than half of the fresh orange juice eaten in the US comes from Brazil, the largest orange juice producer in the world. Brazil is a significant supplier of coffee to the US as well.
As Brazil pursues Mr. Bolsonaro on allegations of trying to stage a coup to overturn his defeat in the 2022 election, the proposed tax coincides with an unprecedented pressure campaign against the country.
In a recent remark, Mr. Lula declared that until a trade agreement is struck, Brazil would not be schooled by anybody and would fight against duties on Brazilian imports that go into force on August 1.
Though it has permitted the government to apply worldwide tariffs for the time being, a federal appeals court is scheduled to hear arguments later this month in a case contesting Mr. Trump’s use of the International Emergency Economic Powers Act to levy duties.