The cork industry in the United States has reason to celebrate as the corks they are using in their winemaking process are now exempt from tariffs. This exemption was made possible through a framework trade agreement between the United States and the European Union, which singled out cork as an “unavailable natural product.” This exemption means that cork, along with a few other items like airplanes and generic pharmaceuticals, are now free from a 15% U.S. tariff on most EU products.
Portugal, the world’s largest cork producer, played a crucial role in lobbying for this exemption. Portuguese diplomats worked tirelessly on both sides of the Atlantic to ensure that cork was included in the list of exempted items. Patrick Spencer, the executive director of the U.S.-based Natural Cork Council, even raced to Washington to explain the origins of cork to U.S. trade officials.
The U.S. is the second-largest market for Portuguese cork after France, with imports totaling $241 million in 2023. The majority of these imports are in the form of stoppers for wine, spirits, olive oil, honey, and other liquids. Cork has various applications beyond the wine industry, including its use in thermal protection on rockets by NASA and SpaceX.
Despite having a similar climate to the Mediterranean, the U.S. has never developed a cork industry due to the long time it takes for cork trees to mature and produce quality bark. Cork harvesting is a specialized skill, and cork harvesters are among the highest-paid agricultural workers in Europe.
The sustainable harvesting process and biodegradability of cork have led many U.S. winemakers to return to using cork stoppers. The cork industry has also addressed the issue of cork taint, which caused a funky taste in wines in the past. With new technologies like screw caps that mimic cork, wineries now have options for sealing their bottles.
Overall, the exemption of cork from tariffs is a significant win for both U.S. winemakers and the cork industry. Cork’s unique properties and versatility make it a valuable material in various industries, not just in winemaking.
