Portugal’s Cork Wins Trump Tariff Exemption

US winemakers have something to celebrate: the corks they’re popping won’t be subject to tariffs.

The exemption was vital for Portugal, the world’s largest cork producer, which accounts for about half of the global supply.

Cork comes from the spongy bark of the cork oak tree, primarily grown and harvested in the Mediterranean basin.

The framework trade agreement between the United States and the European Union singled out the material as an “unavailable natural product,” Dee-Ann Durbin and Barry Hatton reported for the Associated Press (AP).

As of Sept. 1, cork joined a handful of other items — including airplanes and generic pharmaceuticals — that are exempt from a 15% US tariff on most EU products.

The exemption was vital for Portugal, the world’s largest cork producer, which accounts for about half of global supply. Portuguese diplomats lobbied on both sides of the Atlantic for the carve-out.

Patrick Spencer, executive director of the US-based Natural Cork Council, traveled from Salem, Oregon, to Washington in June to explain cork’s origins to US trade officials and to seek relief.

The Wine Institute, which represents California vintners, also pushed for the special exemption. Spencer said he was thrilled when a summary of the US-EU agreement released in August mentioned cork.

“It was a great day in our neighborhood,” said Spencer, a self-described “cork dork.”