1 Beloved Wine Essential Just Escaped Trump’s Tariffs
The United States has recently exempted cork from tariffs, providing a reason for U.S. winemakers to celebrate. Cork, sourced from the cork oak tree primarily grown in the Mediterranean basin, was singled out as an “unavailable natural product” in the framework trade agreement between the U.S. and the European Union. This exemption from a 15% U.S. tariff on most EU products was crucial for Portugal, the world’s largest cork producer.
Portuguese diplomats played a significant role in lobbying for this exemption, emphasizing the importance of cork in their economy. The U.S.-based Natural Cork Council also pushed for the special dispensation, highlighting the value of cork in various industries.
While cork is now exempt from tariffs, it remains unclear if other natural products will receive similar treatment in future trade agreements. The U.S. Department of Commerce and the White House have not provided clarity on this matter.
The U.S. is the second-largest market for Portuguese cork, importing $241 million worth of cork in 2023. Cork has various applications, from wine stoppers to thermal protection on rockets. Despite having a similar climate to the Mediterranean, the U.S. has not developed a cork industry due to the lengthy time it takes for cork trees to mature.
The sustainable harvesting process and biodegradability of cork have led many U.S. winemakers to return to using cork stoppers. The cork industry has addressed issues like cork taint, making cork a preferred choice for aging wines. While screw caps have gained popularity, cork remains the standard for certain types of wines.
Overall, the exemption of cork from tariffs signifies a positive development for the cork industry and may pave the way for similar exemptions for other natural products in future trade agreements.
