US winemakers have cause for celebration as corks, a vital component of their industry, are now exempt from tariffs. This natural product, derived from the spongy bark of the cork oak tree, is predominantly cultivated and harvested across the Mediterranean basin.
The material was specifically identified as an “unavailable natural product” within the framework trade agreement between the United States and the European Union. Consequently, from 1 September, cork joined a select group of items, including aircraft and generic pharmaceuticals, that are no longer subject to the 15 per cent US tariff applied to most EU goods.
This exemption holds particular significance for Portugal, which stands as the world’s leading cork producer, accounting for approximately half of global output. Diplomatic efforts from Portugal were instrumental, with lobbying taking place on both sides of the Atlantic. Patrick Spencer, executive director of the US-based Natural Cork Council, travelled from Oregon to Washington in June to advocate for the tariff reprieve, explaining cork’s unique origins to US trade officials. The Wine Institute, representing Californian vintners, also confirmed its push for this special dispensation.
Spencer said he was thrilled when a summary of the U.S.-EU agreement released in August mentioned cork.
“It was a great day in our neighborhood,” said Spencer, a self-described “cork dork.”
It’s unclear if cork is unique or if other natural products will be exempt from U.S. tariffs in future trade agreements. The U.S. Department of Commerce and the White House did not respond when The Associated Press asked about tariff exemptions.
It’s not even clear if the tariffs President Donald Trump put on imports from the EU’s 27 member nations and almost every country will remain. Late last month, a U.S. appeals court ruled that Trump had no right to impose his sweeping tariffs, although it left them in place while his administration appeals to the U.S. Supreme Court.
But if the tariffs stay in place, cork may signal other exemptions to come. U.S. Commerce Secretary Howard Lutnick indicated during a July interview with CNBC that natural products like mangoes or cocoa may be free from tariffs
The U.S. is the second-largest market for Portuguese cork after France. In 2023, the U.S. imported $241 million worth of cork from Portugal; just over 70% of it came in the form of stoppers for wine, spirits, olive oil, honey and other liquids, according to the Natural Cork Council, a trade group.
Cork has other applications, too. NASA and SpaceX have used it for thermal protection on rockets. Cork crumbles are also used as infill for sports fields and inserted into concrete on airport runways to help absorb the shock of plane landings.
Even though California has a similar climate to the Mediterranean, the U.S. has never developed a cork industry. There was an attempt to start one during World War II, and around 500 cork oaks from that period remain on the campus of the University of California, Davis.
But the effort evaporated when the war ended. The problem: it takes 25 years for a cork tree to produce its first bark for harvesting, and the initial yield typically isn’t high quality. After that, it takes the tree about nine years to grow new bark.
“Americans are not patient enough to wait for a tree that takes 25 years to give its first harvest,” said Antonio Amorim, the chairman and CEO of Portugal’s Corticeira Amorim, one of the world’s largest cork companies.
Cork harvesting is also an extremely specialized skill, since cutting into a tree the wrong way could kill it. Cork harvesters are the highest paid agricultural workers in Europe, Spencer said.
