China is expected to reduce its import tariff on olive oil from 10% to 5% from 1 January 2027, for a four-year period, according to EU sources cited by EFE on Tuesday. The announced reduction would lower the cost of importing olive oil into China as purchases recover from the decline caused by high prices in recent years.
The measure forms part of the trade understanding announced by Beijing and Brussels on 9 October, following meetings between European Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao. Olive oil, footwear and car parts were among the products identified for lower duties. The Commission put the current value of European exports covered by the proposed tariff reductions at almost €4 billion, with estimated annual duty savings of at least €225 million across the package. The talks also produced commitments to facilitate Chinese export licences for rare earths and permanent magnets.
China's olive oil imports reached 34,400 tonnes between April 2025 and March 2026, around 14,000 tonnes more than in the previous twelve months, according to figures from the Spanish olive oil interprofessional organisation cited by EFE.
Spain supplies around 77% of the olive oil imported by China, putting its exporters in a strong position to benefit from the reduction. The opportunity also extends to other European exporters and potentially to producers supplying Spanish bottlers, if additional Chinese orders generate more purchases along the supply chain.
A lower tariff would give importers more room to adjust selling prices or improve margins. How much it encourages additional buying will depend on pricing decisions and consumer demand. The Commission described the proposed cuts as reductions in most-favoured-nation tariffs, which generally extend to other WTO members receiving the same treatment, so the measure could also benefit suppliers outside the EU.