The US president Trump imposes duties on our Made in Italy but extra virgin olive oil is excluded. Ecco perché?
What are Trump’s duties about?
Trump’s decision to impose duties on imports from the EU has placed big questions for companies in the agri-food sector of the made in Italy. Since the start of the protectionist measure, many Italian companies in the agri-food sector have experienced huge losses and fewer exports. A month after President Trump announced that he would impose duties on EU imports, those uncertainties became harsh realities.
Why this measure?
The measure comes in response to a dispute between the European Union and the United States regarding preferential treatments for the European aircraft manufacturer against the American competitor Boeing. Beyond this specific case, Trump’s decision may very well damage a huge part of the European exports to the United States.
What about extra virgin olive oil?
Extra virgin olive oil does not seem to be included and resists duties. Many producers have sighed in relief but, only a month after Trump’s announcement, things may be slightly different.
Extra virgin olive oil is a jewel for Italian and European production that cannot be easily replaced by American productions as happens with other products. . In fact, extra virgin olive oil is an extremely complex product that is the result of particular climatic and environmental conditions and, even more importantly, of habits, traditions, studies and research that we, as oil producers, have been carrying out every year for centuries with the aim to reach a final product that has the best organoleptic and chemical characteristics.
Find out more about our production chain and how we ensure these characteristics.
As such, US oil production and US consumers could not make up for a lower European offer of extra virgin olive oil.
Actually, potential commercial damage is just around the corner. In fact, bottled Spanish oil may be subject to duties (as for now we are only talking about Iberian oil) but not bulk oil imports. The aim would be to stimulate foreign direct investment for the creation of local packaging hubs hiring US workers. The US is happy about it because it increases their chances of acquiring know-how on part of the oil supply chain and the European authorities so far do not seem to be very concerned because exports are still guaranteed.
Italian extra virgin olive oil
Among the various uncertainties surrounding the issue, a possible certainty derives from the fact that Italian production seems to be excluded from duties. We find confirmation and comfort in the fact that the enormous added value of the Italian oil production cannot be easily replicated. Italy, and especially its southern regions, possesses an infinite cradle of knowledge and practices that are as ancient as the territory itself. Thus, our twenty-year entrepreneurial experience in the production and marketing of oil has been followed, as for many of our territory, by decades of olive growing practice.