Spanish Olive Oil Producers Eye US Market Amid Tariff Fears
ANTEQUERA, Spain (Reuters) - One of Spain's leading olive oil producers is pondering an expansion into the U.S. in response to the tariff war unleashed by Washington, just as its peers are rushing out exports while the bulk of new tariffs are still on hold.
Spain produces about 40% of the world's olive oil and sends about 180,000 metric tons a year to the United States.
"In the medium to long term, we may have to make more investments in the United States, which ultimately are investments that will be made there instead of Europe," said Antonio Luque, the CEO of Dcoop, one of the two partners behind the top-selling U.S. brand Pompeian.
He said Dcoop, a cooperative of 75,000 families in the southern region of Andalusia, could expand its still modest olive plantations in the United States, where Pompeian has two bottling plants. Last year, Dcoop sales there totalled 240 million euros ($273 million).
President Donald Trump's administration has slapped a 10% tariff on imports of most European goods, including olive oil, although it announced a 90-day pause on Wednesday on higher, 25% "reciprocal" duties.
Luque said the uncertainty around Trump's trade policies made it hard to plan, but that Dcoop still hoped to expand its U.S. market share, believing that a 10% tariff would not significantly hurt sales.
The Spanish exporters' association Asoliva expects the supply of olive oil to surge over the coming months thanks to a recovery from an extended drought, and says likely falls in prices could partially offset the tariffs.
Other producers like Nortoliva, which exports 10% of its production to the U.S., are accelerating their shipments before the 25% tariff rate kicks in.
"We are loading new orders to the U.S. today and next week," said Nortoliva's general director, Jordi Guiu. "Our American customers are increasing orders, they want to bring shipments forward to avoid paying the tariff surcharge in 90 days' time." ($1 = 0.8802 euros)
(Reporting by Jon Nazca and Corina Pons; Writing by Emma Pinedo, editing by Andrei Khalip and Kevin Liffey)
