Spain's olive culture relies on resilience despite Trump tariff threat

Known as 'liquid gold' since the time of Greek philosopher Homer, Spain is now the world's biggest producer of olive oil, and would suffer the most from tariffs.

But it's much more than just an industry in Spain; it's a way of life, celebrated in fiestas and festivals like 'La Fiesta del Olivo,' or the Olive festival in Mora, in the region of Castile-La Mancha.

It's been celebrated for over 70 years, and the parade has thousands lining the streets of the town as the parade winds its way through the town in the Toledo province.

"This is our culture, this is our history," Jorge told CGTN Europe, a student surrounded by 'los morachos' or local revelers dressed in the traditional blue olive worker's uniform and checkered handkerchief of the fiesta tied around their necks.

"Olives are the soul of Spain," shouted Sara, another member of Jorge's  party, as the parade floats rumble past, some donkey drawn carts, others with young girls dressed in blinding white dresses tossing sweets and treats to the crowd.

One of the floats featured a giant olive oil press, another to Don Quixote and his creator Cervantes, the region made famous for becoming the stage for the errant knight.

Castile-La Mancha produced over 90,000 tonnes of olive oil last year, and the industry connects many of the small towns around here and is the lifeblood of the community.

Not far from the fiesta is a name very familiar with the locals - 'Garcia De La Cruz,' the family has been producing Olive oil for over six generations, surviving a civil war, financial crises and pandemics.

The family is now run by two brothers who have invested heavily in exports to the United States, which they believe will soon be the world's biggest consumer of olive oil, but that is now threatened by U.S. administration tariffs.

We met one of the brothers, CEO Eusebio García de la Cruz Pascual, who has moved to the U.S. with his family to manage their growing presence there.

"We sell maybe between 30-40 percent of our total exports to the U.S.," he said. "Right now it's our most important market."

"Between 70-90 percent olive oil in the U.S. belongs to Spanish olive trees,”he added, explaining how Italian olive oil companies buy Spanish olives and olive oil, bottle it and sell it as Italian.

"American consumers think olive oil is from Italy. No, it's from Spain."

With negotiations ongoing between the EU and the U.S., the tariff uncertainty is hurting investment plans in the U.S. and threatening the million-plus people employed full-time or casually in the harvest each year in Spain.

"It's a big problem because in the morning Trump said we will apply tariff, in the afternoon takes off tariffs and in the evening applies them again, 20, 10, 100 percent. It's crazy because we need to invest, but it depends on tariffs," said García de la Cruz Pascual.

And simply growing olives or even opening a bottling plant in the U.S. isn't as easy as it sounds.

"The land is very expensive to start with, and if you think opening a bottling plant is as simple as: Open the pipes, fill the bottles. It isn't that easy. The labels, cups, boxes, the temperature, the humidity, everything is different. So it's a big problem to develop a bottling plant in the U.S.

"At the end of the day you need people with the experience, and they are here in Spain. I love the U.S., but this is a big problem right now for the U.S. and they don't realise."

A viral TikTok skin craze has reached a new generation with old news: that olive oil is really good for you: For your skin, and for your heart.

In fact, the EU is currently processing a potential recognition of the health benefits of consuming olive oil and how it can prevent heart disease - the world's biggest killer. The industry is growing in other ways too.

La Almazara in Ronda, Malaga, is the world's first ever signature olive oil mill, museum, and cultural centre - a giant work of oxidised steel surrealism designed by architect Philippe Starck.

The building pays homage to three Malagan icons: The bull, Picasso, and olives; it opened in October 2024 after a 27-million-dollar investment.

Oleo tourism or olive oil tourism is on the rise and here you can do olive oil tasting, learn about the entire process and even press your own olive oil.

Not far from La Almazara you'll find the world's largest producer of olive oil - a Cooperative called Dcoop.

They represent small farmers from across Spain; their power comes from their collective bargaining.

New tariffs could cost Spain up to four billion dollars

Their industry has faced similar threats back in 2019. U.S. administration tariffs specifically targeted Spanish olive oil, 25% tariffs meant an 80% drop in exports from some exporters, but it could be much worse this time around with potential losses to the tune of between three-and-a-half and four billion U.S. dollars.

And EU-wide tariffs would hit Spain worst as it exports about 375,000 tons of oil a year to Italy, of which Italy sells around 170,000 tons to the United States. If Italy also cannot export, they would also stop buying oil from Spain.

So what can Spain do?

"Well, the best way to protect ourselves is effective action by the European Union with a firm position that defends our collective interests," Manuel Pérez Vicente, DCo-op International Sales Director tells CGTN.

Tariff pain would translate to local suffering, Andalucia produces more of this liquid gold than any other region, 45% of Spain's production and 20% of the world's output - that's more than all of Italy.

Benito Aviles farms the olive plantations belonging to his family for generations nearby.

"These days olives and olive oil are pretty much the only thing keeping our local rural towns alive," he said. "Tariffs would mean job losses, people losing livelihoods, in the harvest, in the fields, and in the factories. It's something I don't even want to think about, we have to try and stay positive."

It's impossible to overstate just how deep the culture of olives and olive oil runs through communities across Andalucia.

Sculptor Diego Guerrero has been rescuing old and used olive trees from the chopping block and local chimneys for over 20 years in his workshop in the small village of Parauta, Ronda.

"I give them a second life," Guerrero told us. "Olive wood is a noble and durable wood to work with, it's versatile, but also tough and resistant. 3,500 year-old Egyptian sculptures made with it appear intact even now. For Andalusia, it's vital, it's part of our history, part of who we are."

Tariffs are a real threat, but Spain's olive culture is deeply rooted, and just as resilient.