Spain’s Deoleo, the world’s largest olive oil producer, is warning that President Donald Trump’s plan to raise tariffs on European Union imports could lead to higher prices and reduced availability of olive oil for U.S. consumers.
The Trump administration has proposed a steep tariff hike — from 10% to 30% — on EU goods beginning August 1, intensifying trade tensions with the 27-member bloc. With negotiations ongoing, uncertainty looms over whether a last-minute deal can be reached.
Deoleo, which owns major olive oil brands like Bertolli and Carbonell, says the U.S. market is especially vulnerable. That’s because roughly 95% of all olive oil consumed in the U.S. is imported, largely from the Mediterranean.
“Such policies will affect end users,” Deoleo CEO Cristóbal Valdés told CNBC via email. “Access to olive oil should not be penalized — it should be promoted.”
U.S. Heavily Dependent on Imports
While the U.S. produces olive oil domestically on about 40,000 acres, that pales in comparison to the EU’s nearly 10 million acres dedicated to olive cultivation. Spain alone leads global production, consumption, and export of the so-called “liquid gold.”
Deoleo generates over 25% of its total revenue from the U.S. market, making the country a key strategic focus. Valdés said the company is preparing for potential fallout by boosting marketing efforts and consumer education campaigns — particularly around the health benefits of olive oil.
“We’re reinforcing our brand positioning, especially for Bertolli, which stands for trust and consistency in the U.S.,” Valdés added.
Tariff Fallout Could Shake Global Market
Analysts warn that higher U.S. tariffs could send shockwaves through the global olive oil supply chain. A sharp drop in U.S. imports would likely create a surplus in Europe, driving prices down and sparking increased competition among producers.
Meanwhile, American consumers may face limited access and steeper prices for olive oil — a kitchen staple praised for its health benefits.
The Trump administration’s broader tariff push is also rattling other European industries. Irish whiskey distillers, Italian cheesemakers, and French wine producers have all voiced concern about the growing threat to transatlantic trade.
Despite the risks, Deoleo says it will keep “all strategic options open,” including adjusting its supply chain to navigate different market conditions.
“Our priority is to protect American consumers’ access to a product essential to their health,” Valdés said. “We’re committed to ensuring olive oil remains an everyday staple.”
