Deoleo warns tariffs will increase olive oil prices for Americans

In July 2025, Deoleo, the world's largest producer of olive oil, issued a warning regarding the potential impact of impending tariffs from the Trump administration on olive oil imported from the European Union. The company, which is based in Spain, primarily supplies the U.S. market where approximately 95% of consumed olive oil is imported. It reported that American consumers could see price increases as tariffs could rise from the current 10% to as high as 30%, starting August 1, 2025. The concern arises from the fact that the U.S. is highly dependent on imports for olive oil. The American Olive Oil Producers Association indicates that only around 40,000 acres in the U.S. are devoted to olive tree cultivation and oil production. Conversely, European Union countries dedicate nearly 10 million acres to this industry. Notably, the EU accounts for about two-thirds of the global olive oil market and consumes approximately 53% of it, with Italy and Spain being the leading players. This situation places pressure on Deoleo, as American customers account for about a quarter of its global revenue. Despite the challenges, the CEO, Cristobal Valdes, mentioned that the company is working to mitigate the impact of these tariffs by enhancing marketing strategies in the U.S. and looking into ways to improve supply chains to ensure that American consumers can still access olive oil at reasonable prices. The uncertain trade climate has affected suppliers and producers, who now find themselves in a predicament similar to that faced by Italian cheesemakers and French wine producers, awaiting clarity on the U.S. tariff decisions. Experts predict that if higher tariffs are implemented as proposed, not only will prices rise, but there could also be a supply backlog in Europe due to increased demands on olive oil suppliers. All these dynamics underscore the importance of olive oil in American kitchens and highlight how trade policies can directly impact consumer prices.