Bloomberg – A US orange juice distributor is processing President Donald Trump’s decision to impose a 50% rate on Brazil from next month.
Johanna Foods argues that Trump’s reasons for increasing the rate-including support for former President Jair Bolsonaro-do not represent “unusual and extraordinary” threats that give him emergency authority to circumvent Congress Taxation Power.
The company based in New Jersey estimates that 50% tariffs would increase its non -concentrated orange juice costs in US $ 68 million over the next 12 months and raise retail costs for consumers between 20% and 25%. According to the complaint, Brazil provides more than half of all orange juice sold in the United States.
The case, presented on Friday (18) at the US International Court of Commerce, adds to the pile of legal challenges on Trump’s tariff policies.
For now, a Federal Court of Appeals has allowed the government to apply the global tariffs that Trump ordered using economic emergency powers and should hear the arguments later this month. The commercial court is also evaluating a case of the end of Trump’s tariff exemption for China low value products.
White House spokesman Kush Desai said in a statement that “the government is legally and fairly using the tariff powers that were granted to the Executive Power by the Constitution and Congress to level the field of action of American workers and protect our national security.”
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Johanna Foods’ lawsuit is centered on a July 9 letter that Trump sent President Luiz Inacio Lula da Silva and released on social media announcing the 50%rate. In the letter, Trump wrote that the rates are linked to the way Bolsonaro was “treated”, “insidious attacks on free elections” and “longtime and very unfair business relationship” between the two countries.
Bolsonaro is facing accusations that he tried a coup of state to maintain power after losing the 2022 election.
Johanna Foods argued that Trump’s letter is not a formal executive order and has not declared a “national emergency” or identified new threats. The company said Trump’s letter referred to “longtime” issues as opposed to “an emerging economic threat.” Unlike Trump’s previous tariff executive orders, the letter did not directly reference to the International Emergency Economic Powers Law.
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Trump’s fare represented a “existential threat” to Johanna Foods’ businesses, his lawyers said in the complaint. The process was also moved in the name of Johanna Beverage based in the state of Washington.
A White House spokesman did not immediately return a request for comment. A Johanna Foods lawyer refused to comment.
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