Get Ready To Pay More For Olive Oil: Top Global Producer Flags Warning As Trump’s Tariff Deadline Nears

The boss of Spanish company Deoleo, the world's largest olive oil producer, has said that U.S. President Donald Trump's proposed tariffs on the European Union would result in American consumers paying higher prices for the key commodity.

"It is worth noting that approximately 95% of the olive oil consumed in the U.S. is imported, so such policies will affect end users," Deoleo CEO Cristóbal Valdés told CNBC over email.

His comments, reported by CNBC on Thursday, underscore the risk of food inflation in the U.S., even as the final tariff rates are being discussed before an Aug. 1 deadline.

Meanwhile, Conagra Brands (CAG), a major producer of olive oil in the U.S., announced plans to raise prices across its product lineup, even as it issued a cautious outlook for fiscal 2026.

The U.S. and the EU are reportedly scrambling to reach an agreement, which would dictate the effective tariff rate, with the 27-member bloc even considering countermeasures if talks fail.

Deoleo stated that the U.S. accounts for more than a quarter of its total revenue, making it a strategically important market, according to the CNBC report.

Only approximately 40,000 acres of olives are planted exclusively in the U.S. for olive oil production, according to the American Olive Oil Producers Association. By comparison, the EU has approximately 4 million hectares of land dedicated to olive tree cultivation. The region is the world's leading producer, consumer, and exporter of olive oil.

Spain, in particular, is the biggest olive oil producer in the EU and a global reference for prices.

Valdés also stated that Deoleo would keep all strategic options open while working on logistics and supply chain improvements to respond to various market scenarios.

As of the last close, the SPDR S&P 500 ETF Trust (SPY), which tracks stocks in the S&P 500 (SPX) index, is up 7.6% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Williams-Sonoma Climbs After ‘Buy’ Call From Analyst On Improving Market Trends: Retail Turns Bullish