The premium product that is in many American homes, is 95% imported from Europe and will skyrocket in price with tariffs
Olive oil, 95% of which is imported from Europe, may see soaring prices as new U.S. tariffs take effect, leaving American households with few alternatives.
Earlier this month, President Donald Trump sent a letter to the President of the European Commission stating that, starting August 1, imports from European Union member states would face a 30 percent tariff when entering the U.S.
This 30 percent rate is 10 points higher than the one announced on April 2, when the initial round of retaliatory tariffs was unveiled from the White House Rose Garden.
The Trump administration has urged the EU and other countries to reduce tariffs and non-tariff barriers, such as regulations, to avoid these steep import taxes. Both EU and U.S. negotiators have expressed hope that an agreement can be reached by August 1. If not, consumers could see higher prices on some household essentials in the coming months as the two economies are the largest trading partners in the world.
Before departing for Scotland, President Trump gave a brief update on the status of negotiations between his team and the EU. “I would say that we have a 50-50 chance—maybe less than that—but a 50-50 chance of making a deal with the EU,” said the president, who is set to meet with UK Prime Minister Keir Starmer to discuss trade during his trip.
Earlier this week, Treasury Secretary Scott Bessant told Bloomberg that he had made “good progress” in negotiations with the EU, but added that the bloc had not made an innovative offer, citing one put forward by Japan.
Olive oil prices could soon begin to rise if no deal is reached
One of those products is olive oil.
According to the U.S. Department of Agriculture, Americans consume around 400,000 metric tons of olive oil each year—up from just 28,000 tons in the early 1970s. The oil gained popularity in the 1990s as a healthier alternative to butter and other fats. Today, the U.S. produces only about 2 percent of the olive oil it consumes, with the vast majority imported from the EU—primarily Spain, Greece, and Italy.
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However, droughts and wildfires have severely impacted production in those countries, driving up prices both in the U.S. and abroad over the last few years. Tariffs could push prices even higher, leaving consumers with limited alternatives due to a shortage of domestic supply. The good news is that the USDA expects production to rebound, which could help ease some of the pressure on prices and mitigate the impact of tariffs on grocery bills.
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