NAOOA wants olive oil exempt from tariffs

By AI, Created 7:11 PM UTC, May 27, 2026, /AGP/ – The North American Olive Oil Association is urging U.S. trade officials to exempt olive oil from any new Section 301 duties, arguing tariffs are keeping falling global costs from reaching American shoppers. The group says the move would lower grocery bills and better align trade policy with federal nutrition guidance.

Why it matters: - Olive oil prices have fallen globally, but U.S. consumers are still paying more than they should if tariff pressure is removed. - NAOOA says an exemption would help households already worried about food and healthcare costs. - The association argues the change would also better match federal health policy that encourages Americans to consume healthier fats like olive oil.

What happened: - The North American Olive Oil Association asked the Office of the United States Trade Representative to exempt olive oil from any tariff actions tied to 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. - Profaci said global olive oil costs have dropped, but tariff relief is not reaching American families.

The details: - Olive oil from major producing countries faced tariffs of 15% to 25% under the International Economic Emergency Act beginning in April 2025. - Those rates were replaced in March 2026 by a 10% universal tariff under Section 122 of the Trade Act. - The current tariff regime is set to expire in mid-July. - USTR’s Section 301 investigations could produce new permanent duties. - NAOOA says olive oil should be excluded because tariffs cannot achieve a remedial trade objective in this market. - NAOOA also says the tariffs conflict with federal health policy. - Benchmark bulk olive oil prices tracked by the Poolred index have fallen about 50% since peaking in 2024 after two years of drought-reduced harvests. - Retail prices in Spain, Italy and Tunisia have declined along with global costs. - U.S. retail prices have barely moved. - NAOOA says tariffs and tariff uncertainty are also raising shipping, logistics and packaging costs. - The association projects U.S. consumers are paying $2 to $3 more per liter, or an 18% to 25% premium, versus a no-distortion scenario. - The U.S. Department of Agriculture says domestic olive oil supplies less than 2% of total U.S. consumption. - NAOOA says structural climate, land and water limits make meaningful domestic expansion unlikely. - The 2025-2030 Dietary Guidelines for Americans instruct consumers to prioritize healthy fats such as olive oil. - The FDA has updated its “healthy” nutrient content claim rules to include olive oil. - A recent Centiment poll of more than 1,000 registered female voters who are grocery decisionmakers found 4 in 5 are very concerned about the impact of olive oil tariffs on affordability. - NAOOA says a tariff exemption had already been granted under the IEEPA tariffs to other commodities such as coconut oil.

Between the lines: - The association is framing the issue as both a trade-policy problem and a public-health mismatch. - The argument is that tariffs can protect domestic producers in some markets, but olive oil does not fit that model because the U.S. cannot produce enough to change supply conditions meaningfully. - The push also reflects a broader fight over whether consumers should keep paying tariff-inflated prices on foods the government is encouraging them to buy.

What’s next: - NAOOA is seeking a full exemption for olive oil from any remedial tariffs that come out of the Section 301 investigations. - If USTR grants the exemption, NAOOA says prices should fall, market pricing should normalize and consumers should get faster access to lower global costs. - If USTR does not exempt olive oil, the industry expects tariff uncertainty to continue into the next round of trade actions.

The bottom line: - NAOOA wants olive oil treated as a consumer staple, not a tariff target.