Johanna Foods, one of America’s largest orange juice importers and retailers, recently filed suit against the Trump administration. They’re challenging those punitive, high tariffs on Brazilian products. The company argues that the suggested 50% tariffs would result in irreparable damage. They project that this would result in a direct loss of close to $70 million for their company alone. Their lawsuit aims to stop these tariffs from ever being enforced. In response, the company has claimed that these damaging tariffs would put its existing projects and employees in jeopardy.
On April 2, administration officials unexpectedly announced new tariffs on certain types of imported steel from Brazil. This includes orange juice— the U.S. Department of Agriculture tells us that foreign oranges account for more than half of the orange juice consumed in America. Brazil is the largest producer of orange juice in the world, accounting for 75% of exports worldwide. Consequently, any increase in import costs can have outsized effects on prices in American markets.
Johanna Foods estimates that the implementation of a 50% tariff would lead to an additional $68 million in annual costs. The total also exceeds every annual year of profit ever reported in the company’s 30-year history. The firm has roughly 685 employees in New Jersey and Washington State. It fears the negative economic impact of the tariffs could threaten to eliminate its workers’ job security.
“The not-from-concentrate orange juice ingredients imported from Brazil are not reasonably available from any supplier in the United States in sufficient quantity or quality to meet Johanna Foods’ production needs,” stated a representative from Johanna Foods. This make-or-break dependence on Brazilian imports highlights the risks and consequences that could result from the tariffs being proposed.
Johanna Foods markets its trademarked Tree Ripe branded orange juice mainly in chain stores in the Northeast U.S. The average price for a 12-ounce can of frozen orange juice concentrate has shot up to $4.49, which is a staggering 55% increase from 2022. The business fears that the tariffs will force the company to raise their prices again soon. The firm predicts an average increase of 20% to 25% for consumers. It could come with them needing to adjust and innovate in response to increased costs.
In clarifying the administration’s anti-tariff position in response to the lawsuit, White House spokesman Kush Desai emphasized that the administration opposes tariffs on any basis. “The administration is legally and fairly using tariff powers that have been granted to the executive branch by the Constitution and Congress to level the playing field for American workers and safeguard our national security,” he stated.
As of mid-September, Johanna Foods is still waiting for a court declaration that the tariffs are unconstitutional. The company’s legal action underscores what is becoming a deeply troubling pattern in the industry. For example, these express concerns deal with tariffs worsening business sustainability and consumer prices.