Spanish Olive Oil Producers Respond to U.S. Tariffs

Spanish olive oil producers are responding to the threat of new U.S. tariffs by accelerating exports and considering deeper investments in the American market.

Spain, the world’s largest olive oil supplier, accounting for 40% of global production, exports around 180,000 metric tons annually to the U.S.

Following a 10% tariff imposed by the Trump administration, and with a potential increase to 25% within 90 days, producers are under growing pressure.

Antonio Luque, CEO of Dcoop and co-owner of Pompeian—the leading olive oil brand in the U.S.—said they are considering expanding operations stateside. Pompeian already operates two bottling plants in the U.S. and generated €240 million ($273 million) in sales last year.

However, the unpredictability of U.S. trade policies is complicating long-term strategies. Industry association Asoliva anticipates a rebound in production thanks to improved harvests, which could ease some of the tariff impact by lowering prices.

In the meantime, exporters like Nortoliva are rushing shipments to the U.S. before the higher tariffs take effect. “Our American customers are increasing orders to avoid the additional costs,” noted Jordi Guiu, Nortoliva’s general director.

Source: Reuters