How a Tuscan Startup Thrived Selling Olive Oil in the U.S. – Until Trump’s Tariffs Hit

In the rolling hills of southern Tuscany, Romain Piro has dedicated over twenty years to cultivating olive trees and producing premium olive oil. In 2019, he teamed up with his sister, Marie-Charlotte Piro, to launch Olio Piro, a startup focused on exporting their small-batch oil to the United States. The U.S. market has a robust appetite for olive oil, importing about 95% of what it consumes annually—around 400,000 tons—making it the second-largest consumer of olive oil after Italy.

“Why wouldn’t we export to the U.S.? It’s a fantastic market,” Romain muses. Initially, sales skyrocketed, bolstered by awards and endorsements from high-end restaurants. However, recent tariffs imposed on imports have forced the siblings to rethink their strategy. Under President Trump, tariffs reached 15%, making it harder for European producers like Olio Piro to compete.

This change comes as the European Union seeks to negotiate better terms, hoping for exemptions on specific agricultural goods. Yet, the uncertainty looms large over smaller producers who lack the financial buffer that larger companies enjoy. As Romain Piro shares, “We never planned to go global this quickly, but we had to.” They are now looking to new markets in Canada, Japan, and Germany to mitigate risks.

Despite the challenges, Olio Piro remains committed to high-quality production. They exclusively hand-harvest their olives using advanced milling technology, justifying a premium price of $56 for a half-liter bottle. This pricing reflects not just quality but a commitment to craft in a market often flooded with cheaper alternatives.

As for the American market, dependence on imported olive oil could become even more pronounced. The U.S. currently produces only about 5% of its olive oil needs, mostly from California. Experts like Joseph R. Profaci, from the North American Olive Oil Association, warn that rising tariffs could ultimately lead consumers to cheaper oils, impacting the market long-term. “Olive oil is essential in American kitchens, yet domestic supply can’t meet the growing demand,” he explains.

Recent studies indicate that price sensitivity has increased, with some consumers opting for vegetable oils instead. While they’re often marketed as healthier, many health experts suggest that these alternatives don’t match the benefits of olive oil. The North American Olive Oil Association is advocating against the tariffs, emphasizing olive oil’s health benefits, but results are yet to be seen.

As large companies strategize around these tariffs, small businesses like Olio Piro must adapt quickly. Marie-Charlotte is working on global expansion, even raising funds to scale operations. “It’s daunting,” she admits, “but necessary for our survival.” With their next olive harvest scheduled for October, they have a bit of breathing room to evaluate their options based on the tariff outcomes before making shipping decisions.

In conclusion, the Piro siblings’ journey underscores the resilience of small businesses in the face of challenging trade realities. While the landscape is shifting, their dedication to quality and careful planning may pave the way for success in a volatile market.

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