Tunisia’s olive oil industry is facing new challenges after the Trump administration announced a 25% tariff on several imported goods from the country, including olive oil—a major source of export revenue.

In 2023 alone, olive oil sales to the U.S. brought in around $223 million, making it Tunisia’s top export to the American market, according to data cited by Arabian Gulf Business Insight. Experts now warn that the added cost could force Tunisian producers to increase prices, making their products less attractive to U.S. buyers.

“Profit margins are already low, so raising prices may hurt demand,” said Sahar Mechmech, an analyst with the Tahrir Institute for Middle East Policy.

Although the American market only represents a small slice—about 3%—of Tunisia’s overall exports, it remains an important option as the country tries to reduce its reliance on the European Union, which limits olive oil imports under strict quotas.

Zaid Alshaalan, an economist with the IACE think tank, noted that the lack of a trade agreement between Tunisia and the U.S. leaves Tunisian exporters more vulnerable. While some businesses might try to absorb the extra cost or find other markets, many could struggle to maintain their U.S. presence.

The new tariffs also affect other important Tunisian sectors such as textiles, dates, and machinery. As global trade conditions remain uncertain and access to European markets is restricted, this latest U.S. policy shift could further strain Tunisia’s trade prospects.