Orange juice importer in the U.S. sues Trump Administration over tariffs

(CNN, KYMA/KECY) - A U.S. based orange juice importer says President Donald Trump's threatened tariffs on Brazil could push up the cost of orange juice at major U.S. supermarkets by up to 25%, and Johanna Foods has sued the administration over it.

It alleges the threatened 50% tariffs on goods imported into the U.S. from Brazil would cause a nearly $70 million hit to its business. and it says those tariffs would result in steeply higher prices for consumers and possible layoffs at the company.

Johanna Foods says it and its subsidiary, Johanna Beverage Company, supply nearly three-quarters of private label not-from-concentrate orange juice to customers in the U.S.

The company supplies retailers such as Aldi, Walmart, Sam's Club, Wegmans, Safeway and Albertsons.

According to the U.S. Department of Agriculture, Brazil supplies more than half of the orange juice consumed in America.

President Trump announced the tariff in a letter to Brazil's president on July 9.

The lawsuit claims it was not a formal executive order and did not invoke any legal basis for which the tariff could be imposed.