Orange Juice Importer Says Brazil Tariffs Will Squeeze American Consumers

Orange juice prices could emergence by 20% to 25%, according to Johanna Foods, a mini U.S. business suing nan White House complete tariffs threatened against Brazil.

President Donald Trump said successful a July 9 letter to President Luiz Inacio da Silva that he would use a 50% tariff to each imports from Brazil starting connected August 1.

Trump said nan precocious tariff complaint was basal because of "the measurement Brazil has treated erstwhile President Bolsonaro."

Prosecutors successful Brazil person alleged that Bolsonaro was portion of a strategy that included a scheme to assassinate nan country’s existent president, who defeated him successful nan past election, and Supreme Federal Court Justice Alexandre de Moraes. Bolsonaro has denied each wrongdoing.

Trump besides said Brazil was censoring U.S.-based societal media platforms and was moving “unsustainable Trade Deficits” pinch nan United States.

However, nan United States has a equipment waste and acquisition surplus pinch Brazil — more than $7 cardinal last year, according to information from nan Office of nan U.S. Trade Representative.

Johanna Foods, which says it supplies astir 75% of each backstage explanation “not from concentrate” orangish juice to customers successful nan U.S., says those arguments do not represent an economical emergency and truthful nan president does not person nan powerfulness to levy this tariff.

“The Brazil Letter does not mention to immoderate ineligible aliases statutory authority nether which nan Brazil Tariff tin beryllium imposed by nan President,” nan company's lawyer Marc Kaplin writes successful a filing.

“The Brazil Letter does not represent a due executive action, is not an Executive Order, does not reference aliases incorporated immoderate Executive Orders aliases modify aliases amend immoderate existing Executive Order.”

The institution says immoderate of its customers see Walmart, Aldi, Wegman’s, Safeway and Albertsons.

Johanna Foods CEO Robert Facchina says nan work would consequence successful an estimated $68 cardinal hit, exceeding immoderate azygous twelvemonth of profits since nan institution was created successful 1995.

“The Brazil Tariff will consequence successful a significant, and possibly prohibitive, value summation successful a staple American meal food,” he writes.

“The not from ore orangish juice ingredients imported from Brazil are not reasonably disposable from immoderate supplier successful nan United States successful capable amount aliases value to meet nan Plaintiffs’ accumulation needs.”

Brazil’s Supreme Court ruled past period that societal media companies tin beryllium held accountable for nan contented posted connected their platforms. Elon Musk’s societal media site, X, was besides briefly banned past twelvemonth successful Brazil aft Musk refused to comply with a tribunal request to prohibition immoderate accounts.

Facchina says layoffs of national manufacturing employees, administrative unit and a reduced accumulation capacity astatine nan company's Flemington, New Jersey, and Spokane, Washington, accommodation are adjacent definite should these tariffs spell into effect. Johanna Foods employs almost 700 group crossed Washington authorities and New Jersey.

Brazil was nan 18th-largest root of U.S. equipment imports past year, pinch much than $42 cardinal worthy of imports entering nan country, according to U.S. International Trade Commission data.

In its ineligible filing, nan institution asks nan Court of International Trade to state that nan International Emergency Economic Powers Act does not assistance Trump nan statutory authority to enforce nan tariffs against Brazil, and that nan president has not identified a nationalist emergency aliases “unusual and bonzer threat” arsenic required by nan IEEPA rule to enforce nan tariffs.

In consequence to nan lawsuit, a White House spokesperson said nan management is "legally and reasonably utilizing tariff powers that person been granted to nan executive branch by nan Constitution and Congress to level nan playing section for American workers and safeguard our nationalist security.”