Olive Oil and Table Olive Sectors on Hold Due to US Tariffs

The sectors of table olives and standardized olive oil are in a state of suspense following the recent decision by the US to impose 20% tariffs on all products imported from the European Union. Although the US announced a temporary suspension of these tariffs for 90 days, applicable only to certain countries, the growing uncertainty has already begun to affect business planning in the agri-food sector. Table olives remain one of the country’s most important export products, with high added value and wide geographic distribution, as exports reach over 100 countries. The largest market is the US, which accounts for 30% of total production valued at €214 million. Following in terms of export value are Germany at €90 million, the UK at €43 million, Australia at €33 million, and Canada at €30 million. According to Kostas Zoukas, President of the Panhellenic Union of Processors-Standardizers-Exporters of Table Olives (PEMETE), this is an unprecedented situation that requires cool-headed evaluation. Without the tariffs, this year could have been a record-breaking one. However, the uncertainty caused by trade barriers is slowing down the sector’s growth potential. Dependence on the US market raises valid concerns, as companies have invested in this relationship for decades. Finding alternative markets is challenging, but PEMETE is exploring new geographical markets, particularly in Asia. To achieve substantial penetration, targeted promotion, investments, state support, and access to funding tools are required. Moving forward, PEMETE seeks two key interventions: diplomatic mobilization and financial support for affected businesses. Regarding economic support, Greece must negotiate through the EU, although direct talks with the US might be more effective, as demonstrated during Donald Trump’s presidency when Greek olives were exempted from tariffs unlike Spanish ones. Meanwhile, similar anxieties are expressed by stakeholders in the olive oil sector. Greek exports of standardized olive oil to the US amount to €60-70 million annually, covering about 8% of Greece’s annual production. The competitive disadvantage against third countries like Turkey and Tunisia, who enjoy lower tariff rates, poses a significant challenge. Additionally, the decline in international olive oil prices further squeezes profit margins for Greek companies.