SPANISH OLIVES TARGETED IN LATEST TRADE SPAT

American snack lovers may find President Donald Trump’s tough-on-trade policies encroaching a little close to home as the U.S. widens its gaze from Chinese steel and Canadian lumber to Spanish table olives.

The Commerce Department is investigating whether Spain is dumping its olives — specifically the mild, drier black types used in sandwiches, salads and pizzas — on the U.S. market. The move has prompted intervention by the European Commission in support of its producers and drawn criticism from the continent’s main farming lobby.

The U.S. International Trade Commission, which is investigating the claim in tandem with Commerce, voted unanimously Friday to proceed with the inquiry. The investigation may result in punitive tariffs later this year that could pull the plug on Spanish olive imports.

For Spain, the world’s biggest olive producer, the U.S. represents a crucial market as its top customer, accounting for 24 per cent of its olive exports. Potential restrictions could cost the local industry $414 million within five years, according to exporters association Asemesa.

As European producers argue they’re being unfairly targeted, U.S. farmers see Spain as a threat.

While the olive market is much smaller than lumber or steel, the U.S. relies heavily on imports. The country bought 167,000 metric tons of foreign olives last year, almost half of which came from Spain. The U.S. also imports olives from Greece, Mexico and Morocco.