How Trump’s Tariffs Impact Greek Olive Oil Exports

New challenges for Greek producers and olive oil businesses have arisen due to tariffs imposed by the American president on imported products in the USA. Specifically, Trump’s 20% tariffs in Europe create massive uncertainty in the Greek olive oil market, where companies export 7-8 thousand tons of olive oil to the USA annually. According to Manolis Giannoulis, President of EDOE and CEO of EL SAP, speaking at a conference on edible oils, Greek exports account for around 20-21% of total packaged olive oil exports. The Greek government is actively working to mitigate the adverse effects on agricultural product exports to the USA caused by Trump’s tariffs. Programs currently underway in the olive oil sector amount to four, with a combined budget nearing €6.5 million. Greece insists on a unified EU response, ensuring national interests are defended. The Greek olive oil industry faces numerous challenges requiring specialized strategies to ensure sustainability and resilience. Global olive oil production has tripled over the last 60-65 years, now reaching 3 million tons compared to 1 million tons in the 1960s. Spain leads global production with about 35%, followed by Italy, Portugal, and Greece, collectively producing 60% of the world’s supply. The Mediterranean basin accounts for roughly 90% of global olive oil production. A relationship between quantity and price exists; when production increases, prices drop, and vice versa. This was evident last year with historically low global production leading to record-high prices. Today, there is a significant reduction as production has returned to normal levels. In global vegetable oil production, palm oil dominates, primarily produced in Indonesia and Malaysia, followed by soybean oil, rapeseed oil, sunflower oil, and cottonseed oil. For 2024-2025, global consumption is projected at 202 million tons, up from 196 million tons in 2023-2024 and 189 million tons in 2022-2023. Soybean oil has played a crucial role in covering increased demand, especially after losses in sunflower and rapeseed oil production.