Economy Minister Warns Spain’s Olive Oil Exports Vulnerable to U.S. Tariffs

By Daniel Dawson

Jul. 25, 2025 14:56 UTC

Summary

Spain’s economy minister warns that the country’s olive oil sector faces significant exposure to U.S. tariffs, with exports exceeding €1 billion and potential impact on up to €22.7 billion worth of trade. European diplomats suggest a 15 percent tariff on U.S. imports of European goods, including olive oil, may be imminent, prompting exporters to consider raising prices to cover the cost.

Spain’s economy minister has warned that the country’s olive oil sector faces significant exposure to tariffs imposed by the United States compared to other industries.

Carlos Cuerpo told la w makers that Spanish olive oil exports to the world’s second-largest consumer exceed €1 billion, representing slightly below 20 percent of total olive oil exports to the U.S. Overall, he said the tariffs could impact up to €22.7 billion worth of trade between the two countries.

“We are facing a scenario with enormous volatility, very high uncertainty,” Cuerpo said. “Our companies, citizens and workers have to get used to living in an environment of greater uncertainty, which makes decision-making difficult and, in many cases, delays important decisions, such as those related to investment or consumption.”

Cuerpo’s testimony comes as European diplomats have told the Financial Times that the European Union and the U.S. are close to reaching a deal that would leave a 15 percent tariff in place on U.S. imports of European goods, including olive oil.

“The Japan agreement made clear the terms of the shakedown,” a European diplomat said. “Most member states are holding their noses and could take this deal.”

Currently, E.U. olive oil exports face a ten percent tariff, paid to U.S. Customs and Border Protection by either the exporter or the U.S. importer.

Many olive oil importers and exporters have informed Olive Oil Times that they may need to raise prices to offset the tariff after the 2025/26 harvest.

U.S. President Donald J. Trump has warned that if the E.U. and U.S. do not reach a deal by the start of August, he will impose a 30 percent tariff on European goods.

The uncertainty arises as new economic data from Andalusia Trade, a business agency run by the regional government, and the Port of Algeciras suggest a front-loading of olive oil exports to get the product into the country before the current 10 percent tariff rises.

Andalusia Trade reported that olive oil exports increased by 38 percent in volume, reaching 366,000 metric tons in the first five months of 2025. However, declining prices at origin mean the exports fell in value by nine percent, dropping to €1.657 million.

Meanwhile, olive oil exports through the Port of Algeciras on the Andalusian coast grew by 21 percent by volume in the first half of 2025. The U.S. is the leading destination for olive oil exports from the port.

The trip from Europe’s sixth-busiest container port to the Port of New York takes seven days, with the most recent shipments expected to arrive in the U.S. ahead of the implementation of the new tariff.

However, port officials also noted a 89 percent increase in Spanish olive oil exports to China, as European olive oil exporters have looked to diversify their sales into other markets.

Back in Madrid, Cuerpo said the potential trade deal between the E.U. and Mercosur could help exporters hedge against U.S. tariffs by gradually eliminating import duties on European olive oil exports to the 270 million people of Argentina, Brazil, Paraguay, and Uruguay.

“The Mercosur represents an extraordinary opportunity for European economies, including the Spanish economy… to cover the impact of tariffs in some sensitive sectors, such as olive oil,” Cuerpo said.

“Progress with these agreements continues to advance… But we must also advance integration within our internal market, harnessing the potential of these 450 million consumers within the E.U.,” he concluded.

Economy Minister Warns Spain’s Olive Oil Exports Vulnerable to U.S. Tariffs

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