The world’s largest producer of olive oil, Deoleo, is warning that impending Trump administration tariffs on the European Union could drive up prices for American consumers. The Spanish-based company says the proposed tariff hike – from the current 10% to as high as 30% by Aug. 1 – would be steep and likely result in higher grocery bills.
Deoleo, which makes brands such as Bertolli and Carbonell, says the U.S. relies heavily on imported olive oil.
CEO Cristobal Valdes told CNBC, “It is worth noting that approximately 95% of olive oil consumed in the U.S. is imported, so such policies will affect users.”
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Homegrown production and European dependence
Deoleo says American customers make up roughly one-quarter of its global revenue, yet the U.S. produces relatively little olive oil domestically. The American Olive Oil Producers Association reports that only 40,000 acres across the country are devoted to olive tree cultivation and oil production.
In comparison, countries in the European Union dedicate nearly 10 million acres to olive farming and oil production, according to CNBC. The EU is the world’s largest producer and exporter of olive oil, supplying two-thirds of the global market. It also consumes about 53% of the world’s olive oil, led by Italy and Spain.
Taxing trade
About 95% of olive oil sold in the United States is imported, with much of it coming from European Union countries like Spain, Italy and Greece.
How producers are responding
Valdes says Deoleo is ramping up its marketing efforts in the U.S. to maintain customer trust during the tariff fight.
“We are strengthening our value proposition in the U.S. through consumer awareness campaigns about the benefits of olive oil and a renewed commitment to our brands, especially Bertolli, which today represents trust and consistency for American consumers,” he said.
The company is also exploring supply chain improvements to adapt to the changing trade landscape with an emphasis on protecting American access to affordable olive oil. Experts warn that the higher tariffs could create a supply backlog in Europe, further squeezing availability.
The uncertainty over imports has placed suppliers in the same boat as Italian cheesemakers and French wine producers, who are also awaiting clarity on U.S. tariff decisions expected in August.
