NAOOA Urges Olive Oil Exemption from Tariff Actions as Global Costs Fall

Association calls on USTR to exempt olive oil from any remedial tariff actions to ensure lower commodity prices reach consumers on this healthy kitchen staple.

NEPTUNE, NJ, UNITED STATES, May 27, 2026 /EINPresswire.com/ -- The North American Olive Oil Association (NAOOA) is calling on the Office of the United States Trade Representative (USTR) to exempt olive oil from any tariff actions resulting from its current Section 301 investigations. NAOOA Executive Director Joseph R. Profaci testified before USTR on May 6, 2026, in support of the association's formal comments urging the exemption.

Olive oil from major producing countries was subject to tariffs of 15%-25% under the International Economic Emergency Act (IEEPA) beginning in April 2025. Those rates were replaced in March 2026 by a 10% universal tariff under Section 122 of the Trade Act, and are set to expire in mid-July. USTR is now conducting Section 301 investigations that could result in new, permanent duties. NAOOA's position is that olive oil should be excluded from any such actions because tariffs on olive oil cannot achieve a remedial trade objective and directly conflict with federal health policy.

Global olive oil costs have dropped sharply, but American consumers aren't seeing the savings. With recent polling showing that a broad majority of Americans rank food and healthcare costs among their top household financial anxieties, a tariff exemption for olive oil could provide timely relief.

Global Prices Have Fallen—U.S. Prices Not So Much

Benchmark bulk olive oil prices tracked by the Poolred index have fallen approximately 50% since peaking in 2024 following two years of drought-reduced harvests. In producing countries like Spain, Italy and Tunisia, retail prices have declined accordingly. In the United States, however, retail prices have barely moved.

Under normal market conditions, U.S. retail prices follow global cost trends with a moderate delay and relatively stable margins. That relationship has broken down. Tariffs and sustained tariff uncertainty are preventing global price relief from reaching American consumers, while also driving up related costs across shipping, logistics and packaging.

NAOOA projections suggest that American consumers are likely paying $2 to $3 more per liter—equivalent to an 18–25% premium compared to a scenario without tariff distortions.

Why a Tariff Exemption Makes Sense

Olive oil is unlike most goods under consideration in the Section 301 investigations. The United States cannot meaningfully expand domestic production—not because of a lack of investment or demand, but because of structural climate, land and water constraints. According to the U.S. Department of Agriculture, domestic olive oil supplies less than 2% of total U.S. consumption. As a result, tariffs on olive oil do not serve a protective purpose and cannot boost domestic production to meaningfully meet consumer demand for this essential healthy kitchen staple.

At the same time, the federal government is actively encouraging Americans to consume more olive oil. The newly released Dietary Guidelines for Americans (2025–2030) expressly instruct consumers to prioritize healthy fats "such as olive oil." The U.S. Food and Drug Administration has separately updated its "healthy" nutrient content claim regulations to include olive oil. Tariffs that raise the price of a food the government is telling Americans to eat more of work at direct cross-purposes with national health policy.

American Families Are Feeling the Impact

The consequences of higher olive oil costs are measurable. In a recent Centiment poll of over 1,000 registered female voters who report being the grocery decisionmaker for their families, 4 in 5 say they are very concerned about the impact of olive oil tariffs on affordability and would welcome policies that improve both the affordability and availability of olive oil in the United States.

A tariff exemption, such as had been granted under the IEEPA tariffs to other commodities like coconut oil, would help ensure that olive oil remains accessible to the households that stand to benefit most from the dietary improvements federal health policy is designed to promote.

The Ask

NAOOA is requesting a full exemption for olive oil from any remedial tariffs that may be imposed as a result of the Section 301 investigations. An exemption would lower prices for American consumers, restore normal market price dynamics and align U.S. trade policy with federal nutrition and public health objectives.

"Global olive oil costs have fallen significantly, but because of tariffs, that relief isn't reaching American families," said Profaci. "Exempting olive oil from future tariff actions is a straightforward step that would reduce costs for consumers and support the healthier eating recommendations our own government is encouraging through the new Dietary Guidelines for Americans and FDA's revised definition of 'healthy' foods."

About NAOOA
Established in 1989, the North American Olive Oil Association is a trade association of producers, growers, purveyors, packagers and importers of olive oil dedicated to establishing and upholding the integrity of the olive oil industry.

Joseph R. Profaci
North American Olive Oil Association
info@naooa.org
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