Donald Trump has introduced his intention to impose a common tariff of as much as 20% on imported items. Whereas sectors like equipment, autos, and chemical compounds are anticipated to endure essentially the most, Spain fears its olive oil business may take a major hit.
Trump’s plans to impose a blanket tariff on European imports are as soon as once more placing Spain’s market in danger, reigniting the long-standing wrestle between the 2 international locations over olive oil exports.
A blanket tariff of 10% or 20% would make it dearer for US corporations to import items, which means that European exports may fall by as much as a 3rd in some sectors, in line with financial forecasts.
The potential of US tariffs brings again troubling reminiscences for Spain, as Trump’s earlier administration triggered a serious disaster within the olive oil sector by imposing excessive import taxes.
Spain, the world’s main producer and exporter of olive oil, despatched 70,000 tonnes to the USA within the first half of 2024, granting Spain a market share of 35.45% in quantity and 37.60% in worth.
The US is the highest vacation spot for Spanish olives go, accounting for as much as 35% of whole exports.
Former President Donald Trump imposed tariffs on about 14% of whole imports when he was within the White Home, together with Spanish olive oil.
Again in 2017, the US imposed tariffs on Spanish olives, citing hurt induced to American producers because of EU subsidies directed at Spanish olive producers by means of the Frequent Agricultural Coverage (CAP).
Because of this, the US Division of Commerce imposed anti-subsidy and anti-dumping duties of between 30% and 44% on imports of Spanish black olives.
These duties utilized solely to Spain, not affecting its opponents similar to Greece, Italy, and Portugal.
In 2017, earlier than the tariffs took impact, Spanish olive oil imports to the US had been price $67 million (round €61 million), this quantity fell in 2022, to only $20 million (€18 million), in line with the European Fee.
The EU challenged these measures on the World Commerce Organisation, resulting in a authorized battle spanning over 4 years and formally concluded in November 2021, when a primary panel dominated that the US administration’s actions had been in breach of WTO guidelines.
That call allowed Brussels to take additional retaliatory measures, and the US finally applied the panel suggestions, ensuing within the eventual elimination of the tariffs.
Nevertheless, the long run additionally stays unsure if Kamala Harris had been to win the presidency, as President Joe Biden maintained his predecessor’s 25% tax on Spanish olive oil when he assumed workplace in 2021.
