Johanna Foods and Johanna Beverage Co., producers and distributors of fruit juices, drinks and yogurt, have sued the U.S. government, alleging unauthorized imposition of tariffs on orange juice imports from Brazil, according to a filing in the U.S. Court of International Trade.
The companies say the move violates the International Emergency Economic Powers Act and the Constitution.
In the filings, Johanna Foods and Johanna Beverage Co. purport to supply nearly 75% of all private-label, not-from-concentrate juice, as well as for two large branded orange juice providers. The companies also state that Brazil is the world’s leading producer of orange juice and is the second-largest supplier of orange juice to the U.S., comprising more than half the orange juice sold in the U.S.
The suit challenges President Donald Trump’s plan to impose 50% tariffs on all goods from Brazil, saying it will cause significant financial harm. The companies estimate an additional cost of $68 million for a 12-month period, claiming that the figure exceeds any single year of profits in the 30-year history of the business.
The companies cite a disruption in the ability to plan and meet production requirements and manage cash flow, as well as an “unmanageable financial burden,” which the companies say cannot be absorbed by their current profit margin.
Johanna Foods and Johanna Beverage Co. also point to the potential impact on employees through layoffs, reduced production capacity and “an existential threat to the sustainability of our business, which supports almost 700 American jobs and contributes significantly to the economies of New Jersey and Washington state.”
The companies also project the cost increase passed on to consumers will be about 20% to 25% of the retail price.
Government agencies and officials named in the suit include the executive office of the president; U.S. Customs and Border Protection and its acting commissioner, Pete Flores; U.S. Trade Representative Jamieson Greer and the USTR office; and Commerce Secretary Howard Lutnick.
