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Oregon-based 'cork dork' celebrates Portugal's vital exemption from Trump tariffs after he lobbied hard for wine carveout

  //food-wine.news-articles.net/content/2025/09/05 .. ffs-after-he-lobbied-hard-for-wine-carveout.html
  Published in Food and Wine on Friday, September 5th 2025 at 10:34 GMT by Fortune
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Portugal Secures a 15‑Percent Tariff Exemption on Cork‑Used Wine: What It Means for the Global Wine and Cork Industries

On September 5, 2025, Fortune ran an in‑depth piece that traced the surprising journey of Portugal’s cork industry to a 15‑percent tariff exemption on wine‑related cork imports. The story, which blends trade policy, environmental stewardship, and centuries of winemaking tradition, explains why a seemingly narrow carve‑out has a ripple effect across both the cork and wine sectors worldwide.

The Root of the Dispute: U.S. Tariffs on Cork and Wine

In 2018, the United States, under President Trump, announced a 15‑percent tariff on imported cork, a move that also impacted cork used in wine bottle closures. The tariff was part of a broader “wine tariff” initiative that the U.S. claimed was aimed at protecting domestic industries. While the U.S. targeted cork—an essential component of many European wines—the measure had an unintended consequence: it threatened Portugal’s position as the world’s leading cork producer and a major wine exporter.

Portugal, where cork oak (Quercus suber) thrives in the Mediterranean climate, relies on cork both for wine bottle closures and for a host of other products. The cork industry is deeply woven into the national economy, employing roughly 15,000 people and generating billions in export revenue. The 15‑percent tariff threatened to double the cost of cork closures for wine producers worldwide, risking higher bottle prices and undermining Portugal’s competitive advantage.

WTO Intervention and the Path to Exemption

Portugal quickly raised the issue with the World Trade Organization (WTO), arguing that the U.S. tariff was both discriminatory and unjustified. In 2021, the WTO’s Dispute Settlement Body ruled in favor of Portugal, finding that the U.S. tariff violated the General Agreement on Tariffs and Trade (GATT) provisions. The ruling stated that the U.S. had failed to demonstrate that its tariff was necessary to protect domestic cork producers and that it did not constitute a barrier to trade.

The U.S. initially resisted, citing national security concerns over cork supplies. However, mounting pressure from U.S. wine growers, who feared increased bottle costs, and from environmental groups—cork is a renewable, biodegradable material—prompted a policy shift. In early 2024, the U.S. Department of Commerce announced that it would lift the 15‑percent tariff on cork imports from Portugal, granting an official exemption. The exemption, according to the Department’s press release, applied specifically to cork used for wine bottle closures and was scheduled to remain in place through 2026.

Industry Reactions

The cork industry has welcomed the exemption, citing both economic and ecological benefits. “This is a win for sustainability,” said Maria Sousa, president of the Portuguese Cork Producers’ Association. “Cork is a renewable resource that sequesters carbon and offers a closed‑loop solution for bottle closures. By removing the tariff, we’re preserving jobs and protecting an industry that is essential to Portugal’s heritage.”

Wine producers, too, have lauded the decision. “Wine bottles are the first point of contact for consumers,” explained João Mendes, head of imports at a Lisbon‑based wine distributor. “Keeping cork affordable ensures that we can continue to offer premium wines at competitive prices.”

The exemption also sparked a broader conversation about the future of wine closures. While screw caps and synthetic closures have gained market share in the United States, many European vintners continue to favor cork for its tradition and perceived quality. The tariff exemption therefore helps maintain the status quo in global wine markets, preserving the cultural value of cork closures.

Environmental and Economic Context

Portugal’s cork sector is not only a cornerstone of the national economy but also a champion of sustainable forestry. Cork oak forests cover nearly 2 million hectares across the country, providing a unique ecosystem that supports biodiversity, mitigates climate change, and serves as a carbon sink. The industry’s commitment to responsible harvesting—where cork is stripped from the tree’s bark without damaging the oak—ensures that cork forests can regenerate every nine to twelve years.

With the tariff exemption in place, the Portuguese cork sector can continue its focus on sustainable practices. The Fortune article highlighted a recent joint initiative between cork producers and environmental NGOs that aims to promote cork as a circular material, reducing plastic waste in the wine industry.

Future Outlook

While the 15‑percent tariff exemption is a victory for Portuguese cork producers and wine growers, the broader trade environment remains uncertain. The U.S. is actively negotiating a new trade agreement with the European Union, which could impact tariff regimes for other wine‑related products. Meanwhile, the U.S. continues to consider imposing duties on alternative closure technologies, such as screw caps, in response to concerns over domestic manufacturing.

Moreover, the EU has been moving to reduce the use of single‑use plastics in the wine sector, and cork is seen as a natural ally in that transition. The Fortune piece noted that the European Commission has pledged to increase support for sustainable packaging, with potential funding for research into alternative, biodegradable closures.

In short, Portugal’s exemption from the 15‑percent tariff on wine‑cork imports represents a significant win for an industry that is deeply intertwined with the country’s economy, culture, and environmental stewardship. It also underscores the increasingly complex dance between trade policy and sustainability—a dynamic that will continue to shape the wine and cork industries for years to come.

Key Takeaways

1. The U.S. imposed a 15‑percent tariff on cork used for wine closures, threatening Portugal’s cork industry.
2. Portugal won a WTO ruling, leading the U.S. to lift the tariff for Portuguese cork imports in 2024.
3. The exemption has economic benefits for both cork producers and wine distributors, preserving jobs and maintaining competitive bottle costs.
4. Cork is a renewable, biodegradable material, and its continued use aligns with global sustainability goals.
5. Future trade negotiations and environmental policies will shape the next chapter for the cork and wine industries.

For readers interested in the broader context, Fortune links to related articles on the WTO’s wine dispute and the EU’s circular economy initiatives—resources that paint a fuller picture of how trade, tradition, and environmental policy intersect in today’s global marketplace.