Wine, oil and fruit exporters remain 'on alert' for Trump tariffs

The impact of US tariffs on European products has left the Catalan agri-food sector "on alert." The most affected products could be olive oil and wine, with a potential impact of up to €45 million, according to estimates by Prodeca, Catalonia's public agricultural development agency. 

Agri-food exports to the US reached a record high in 2024, surpassing €500 million for the first time. Despite last year's record, a report from Prodeca warned of reduced profit margins and the need to diversify towards other markets. 

Catalan agri-food exports to the US have represented around 12-13% of the total exports to the country for more than a decade, but the overall volume of sales has more than doubled in that timespan. This growth trend is seen across all exports to the US. 

By the end of 2023, wine was the most profitable export, accounting for 15.7% of total agri-food exports to the US. It was followed by olive oil (15.1%), fruit juices and vegetable extracts (9.8%), fresh or refrigerated fish (6.6%), cocoa powder (5.4%), and pork meat (5.4%). 

Impact of US Tariffs 

Cristina Serradell, head of international business at Catalonia Trade & Investment (ACCIÓ), a public agency that promotes business growth and innovation, stated that while US tariffs would have an impact, the agri-food sector is not one of the largest exporters to the country. Instead, machinery, perfumery, cosmetics, and pharmaceuticals hold that position. However, wine and olive oil would be among the hardest-hit products. 

Serradell recalled that during Donald Trump’s first administration, tariffs affected wine, olive oil, jams, and cheeses, causing a 16% drop in exports of these products, with a €26 million impact. 

A recent Prodeca report estimates that the impact of new tariffs could reach €45 million per year, mainly affecting the ''fine food'' sector (including snacks, sweets, drinks, and ready meals), olive oil, wine, and cava. 

The report warned of a possible loss of competitiveness, reduced profit margins, and the need to diversify markets, with Asia-Pacific, Latin America, and the Middle East as potential alternatives. However, it also highlighted opportunities, such as improving the international positioning of Catalan PDO (Protected Designation of Origin) products and promoting them as premium goods. 

A need for broader international focus 

The olive oil industry is expected to be among the hardest hit by Trump's new tariff threats. The US is the world’s second-largest consumer of olive oil but produces only 1% of global supply. In 2019, olive oil producers faced a severe 25% tariff on bottled olive oil, reducing competitiveness, a scenario that could be repeated if Trump follows through on his trade threats. 

Galetes Trias, based in Santa Coloma de Farners, north of Barcelona, produces 360 tonnes of almond-based cookies annually. The company exports 5% of its production to foreign countries, including the US.  

Maria Trias stated that the company is "on alert" regarding Trump's tariff policies. While their US sales are "small," higher tariffs could lead to price increases for American consumers. "But our distributors continue working, and we're even trying to introduce new products in the US, waiting to see what happens with the tariffs," she told the Catalan News Agency (ACN). 

Alta Alella winery owner Josep Maria Pujol-Busquets acknowledged that new US tariffs could be a serious blow, especially following years of inflation. "Purchasing power has dropped significantly," he said. 

However, he remains optimistic, recalling that similar tariffs were overcome in the past. "We'll see how it ends. It’s a big unknown," he added. If tariffs are implemented, negotiations will be needed to determine how costs are shared, as the US market is highly price sensitive. 

Return to the Russian market 

Fruites Font, based in Torres de Segre, Lleida, exports 70% of its 61,000-tonne fruit production, focusing on stone fruits, of which 85% are exported. 

Company owner Xavier Font noted that France and Italy, Catalonia’s main competitors in stone fruit, have reduced their production, making Catalan fruit more competitive in terms of quality, sugar content, and price. The company exports 80% of its pears but imports apples from Italy and France due to their superior quality. 

Though Fruites Font does not export to the US due to long shipping times, which are unsuitable for perishable fruit, they remain alert to international market changes, including US tariffs and a potential reopening of the Russian market if Putin lifts the agricultural import ban imposed in 2014.