Envision waking up to find your company’s core cost input just increased by 50 % over night. You have actually hedged against rising cost of living. You’ve streamlined your supply chain. Yet you didn’t prepare for this– a politically driven tariff targeting a country in charge of over half of your raw material supply
That’s not theoretical. That’s what’s unraveling now in the U.S. orange juice market.
The Real-World Case: Orange Juice & & the Brazil Tariff
Johanna Foods– a significant U.S. importer of Brazilian orange juice– has sued versus the Trump administration. Why? A suggested 50 % tariff on Brazilian imports intimidates to upend its company design. With 75 % of America’s not-from-concentrate OJ imports linked to Brazil, the effect isn’t limited to breakfast tables. It’s gazing down a $ 68 million boost in annual expenses , a full-blown supply chain situation , and rate walkings that might surpass 25 % for end customers
For financial leaders– CFOs, controllers, economic directors– this increases a wider, more important question:
What’s more damaging to your P&L: rising cost of living or tolls?
Allow’s break it down.
Inflation vs. Tariffs: Two Different Financial Threats