The US tariff impact on Spanish food exports has hit beloved national staples like jamón ibérico and olive oil hard. Due to trade tensions sparked by former President Trump’s policies, these hallmark items, which were once prospering in the US market, are now facing declining competitiveness and rising costs.
Spanish exporters are turning to new foreign clients in order to ensure their future as tariff concerns increase.
Jamón and Olive Oil Producers Scramble Amid US Tariff Impact
The US tariff impact on Spanish food exports is reshaping Spain’s agricultural trade strategy. Earlier this year, the US imposed a 20% tariff on EU goods, later eased to 10% during negotiations. But Trump has warned of hikes up to 50% if no deal is struck with Brussels by July 9.
This uncertainty is hurting major exports. Jamón ibérico, celebrated for its heritage and flavour, now risks price hikes in the US. Grupo Osborne’s Jaime Fernández says the product “represents our tradition,” yet admits tariffs pose a threat to our industry.”
Spain’s pork sector, which supports 400,000 jobs, may lose market share as prices rise. Similarly, the olive oil industry, still recovering from drought, faces losing its foothold in the US, which consumes half the world’s olive oil outside the EU.
Although local US producers benefit from reduced competition, their supply remains too small to replace Spanish imports. Still, if countries like Turkey or Tunisia receive better trade terms, Spain could see a sharp decline in demand.
Spanish Producers Seek New Buyers Abroad
In response, Spanish exporters are already shifting focus. Fernández confirms Grupo Osborne is exploring growth in China, Italy, France, and Portugal. A prolonged 20% tariff, he adds, would “lead to the relocation of resources from the US.”
Experts predict that if some countries face lighter tariffs, producers may reroute goods through places like Morocco or Andorra to avoid higher charges. That could spark enforcement challenges and trade loopholes.
With food exporters holding less influence in EU trade talks, there’s concern they’ll be sacrificed in favour of industrial deals. For now, companies build Plan Bs and Plan Cs to minimise their US exposure and protect their future.
