Tue, 10 Jun 2025

Tue, 10 Jun 2025 US tariff turmoil makes Spain's flagship foods seek other markets

Spanish ham and olive oil producers are looking at other nations to replace sales in the US.
The Spanish ham industry, worth nearly €750m ($850m; £630m) in exports annually, is facing a significant threat due to trade tariffs imposed by US President Donald Trump. The 20% charge on all European imports introduced in April has already affected demand for cured ham in the US, which was previously the biggest importer of Spanish ham outside the EU. The industry's main concern is that the tariff could rise as high as 50% if trade talks with Brussels do not come to a successful agreement by July 9. This would pose a significant threat to Spain's pork industry, which represents over 400,000 direct and indirect jobs. Jaime Fernández, international commercial director for the Grupo Osborne, described jamón ibérico as a "flagship" national foodstuff, but acknowledged that the uncertainty caused by the tariffs is making it difficult for his company to plan for the future. The US market is one of the top priority markets for Spanish ham exporters. Rafael Pico Lapuente, director general of the Spanish association of olive oil exporters (ASOLIVA), expressed concern about the impact of the tariffs on Spain's olive oil sector. He noted that the US represents half of world olive oil consumption outside the EU and that imports from Spain have grown significantly in recent years. However, Pico Lapuente believes that if a 10% tariff is implemented, it would not create significant distortions in the international market. On the other hand, he warned that higher tariffs for the EU than for competitor countries could have major implications for Spanish producers and the world market. Experts also pointed out that variations in tariffs between countries or trade blocs could lead to rule-bending and chaos, as companies try to find alternative routes to export their products. Javier Díaz-Giménez, a professor of economics at the IESE business school in Madrid, suggested that Spanish producers might consider exporting their products through neighboring countries with lower tariffs. The European Commission has assured that it will act "in defence of European interests" during negotiations with the US. However, Pico Lapuente expressed concern about the influence of food products like olive oil being used as bargaining chips to get a better deal for Europe's industrial products. The industry is bracing itself for the outcome of the trade talks and is already looking at alternative markets in which to invest, such as China or proven European ham consumers.
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