Could Spanish olive oil exports to the United States be curtailed?

Spanish olive oil could disappear from U.S. imports. The U.S. Federal Maritime Commission is considering imposing an embargo on certain Spanish products in retaliation for Spain’s refusal to allow U.S. ships involved in transporting goods to Israel to enter its ports.

Diplomatic conflict with trade consequences

The U.S. Federal Maritime Commission (FMC), the agency responsible for overseeing international maritime transport, has proposed trade sanctions against Spain. Among the measures is a potential ban on imports of Spanish olive oil, as well as cosmetics, ceramics, and other goods.

The conflict dates back to 2024, when Spain began restricting access to its ports for certain U.S. vessels carrying cargo destined for or originating from Israel. In addition to the trade restrictions, the commission proposes charging $200,000 (approximately 178,550 euros) for each port call at a U.S. port by a Spanish-flagged vessel.

Strategic market for Spain

The consequences could be particularly severe for Spain’s olive oil sector. Spain is the world’s largest producer of olive oil, accounting for approximately 40% to 50% of global production. The U.S. market is one of its main export destinations. Spain supplies approximately one-third of the olive oil imported by the United States, in terms of value. According to FMC data, U.S. imports of Spanish olive oil reached about $837 million (approximately 747 million euros) in 2025.

This dependence also affects U.S. consumers. The United States produces barely 5% of the olive oil it consumes annually, so it must rely on foreign suppliers to meet its demand. A potential embargo would force importers, distributors, and supermarkets to seek alternatives in countries such as Italy, Greece, or Tunisia. However, quickly replacing Spanish volumes could prove difficult and drive up the price of the product in U.S. stores.

For now, the sanctions remain a proposal. The FMC has opened a public comment period that will end on December 14, 2026. Spain will also have the opportunity to defend its position before the agency makes a final decision.