Cork Escapes U.S. Tariffs: Portugal’s Wine Industry and American Winemakers Benefit from Trade Exemption on Natural Cork Products

Published Time: 09-05-2025, 10:00

In a rare exemption from U.S. tariffs on European imports, natural cork has been spared, giving both American winemakers and Portugal’s cork industry reason to celebrate. While most European goods remain subject to a 15% tariff, cork’s unique status as an “unavailable natural product” has allowed it to bypass trade restrictions, preserving a vital link between Portugal—the world’s largest cork producer—and the United States, one of its top buyers.

Cork Carves Out an Exemption

Natural cork is harvested from the bark of cork oak trees, grown primarily in the Mediterranean. Under the U.S.-EU trade agreement, the material was classified as an essential but unavailable resource in the U.S. market. As a result, cork joined a short list of exempt products—alongside items such as aircraft and pharmaceuticals—shielding it from tariff penalties introduced during the Trump administration.

Portuguese officials lobbied heavily for the exemption, recognizing cork’s importance to their economy. Patrick Spencer, executive director of the Oregon-based Natural Cork Council, described the announcement as a breakthrough.

“It was a great day in our neighborhood,” Spencer said, noting the U.S. government’s recognition of cork’s unique origins and role in winemaking.

The Wine Institute, representing California’s wine producers, also advocated for cork’s protection, citing its importance to the wine industry.

Trade Uncertainty and Future Exemptions

The broader outlook for tariffs remains unclear. In August, a U.S. appeals court ruled that former President Donald Trump had exceeded his authority in imposing sweeping tariffs on European imports, though the duties remain in effect pending a Supreme Court appeal.

If the tariffs are upheld, cork’s exemption may set a precedent. U.S. Commerce Secretary Howard Lutnick suggested in a CNBC interview that other natural products—such as mangoes and cocoa—could also receive similar treatment in future trade discussions.

The U.S. Market for Cork

Portugal supplies roughly half of the world’s cork, with the United States ranking as its second-largest market after France. According to the Natural Cork Council, the U.S. imported $241 million worth of Portuguese cork in 2023, with more than 70% used for bottle stoppers in wine, spirits, olive oil, and honey.

Cork’s applications extend beyond beverages. NASA and SpaceX have utilized cork for rocket thermal shielding, while ground-up cork is used in sports fields and even in runway concrete to reduce shock from landings.

Despite America’s Mediterranean-like climate in California, the U.S. has never established a cork industry. A brief attempt during World War II left about 500 cork oak trees still standing at the University of California, Davis, but large-scale production failed due to the trees’ slow growth cycle.

“Americans are not patient enough to wait for a tree that takes 25 years to give its first harvest,” explained Antonio Amorim, CEO of Corticeira Amorim, one of Portugal’s leading cork producers.

Skilled Hands Behind the Harvest

Cork harvesting is considered one of Europe’s most specialized agricultural trades. Workers must carefully strip bark without damaging the trees, which can live for centuries. As a result, cork harvesters are among the highest-paid agricultural workers in Europe.

At Herdade de Rio Frio, southeast of Lisbon, harvesters still use traditional hand tools to remove bark slabs. Once harvested, each tree is marked with a number indicating the year, since bark regrowth takes about nine years.

This sustainable method has been practiced in Portugal for more than two centuries, reinforcing cork’s reputation as an environmentally friendly material.

Cork’s Comeback in Winemaking

Cork’s biodegradability and sustainability have contributed to its resurgence in the wine industry after many producers briefly shifted to synthetic closures in the 1990s and early 2000s. Concerns about “cork taint,” a musty taste caused by fungal contamination, once drove wineries toward aluminum screw caps and plastic alternatives.

Advances in quality control have addressed the issue, said Andrew Waterhouse, director of the Robert Mondavi Institute of Wine and Food Science at UC Davis. As a result, cork has regained popularity.

In 2010, 53% of premium U.S. wines used cork closures. By 2022, that figure rose to 64.5%, according to the Natural Cork Council.

Today, many wineries—including Trump Winery in Virginia—use both corks and screw caps. Waterhouse explained that cork remains the preferred choice for wines intended to age.

“If you say, ‘Has this wine aged properly?,’ what you mean is, ‘Was it in a glass bottle with a cork seal in a cool cellar,’” Waterhouse said. “We’re always trapped by history.”

Global and Sustainable Outlook

Portugal’s cork industry not only supports global winemaking but also contributes to environmental conservation. Cork oak forests absorb large amounts of carbon dioxide and provide habitats for endangered species in the Mediterranean ecosystem.

As trade debates continue, cork’s tariff exemption highlights the balance between global commerce, sustainability, and tradition. For now, winemakers and cork producers alike can breathe easier knowing that the centuries-old craft of cork harvesting remains protected in an uncertain trade climate.