N※N

The cork in your wine bottle is one of very few products that dodged Trump's tariffs

  //food-wine.news-articles.net/content/2025/09/05 .. ry-few-products-that-dodged-trump-s-tariffs.html
  Published in Food and Wine on Friday, September 5th 2025 at 4:05 GMT by Seattle Times
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

The cork in your wine bottle is one of very few products that dodged Trump’s tariffs

When President Donald Trump announced a series of “America‑first” tariffs in early 2018, most observers imagined the move would hit the wine industry’s most visible inputs: bottles, glass, and especially cork. Yet the simple thing that seals a bottle of wine has, quite literally, slipped through the net. A Seattle Times investigation shows how a narrow technicality in U.S. tariff law allowed wine corks to stay duty‑free, even as the rest of the world was hit with steep duties for almost any imported good.

The backdrop: a trade war that almost reached every industry

The tariff spike was part of a broader trade conflict between the United States and the European Union. The U.S. had slapped a 25 % tariff on European steel and aluminum, and the EU retaliated with a 7 % duty on U.S. goods—including wine. The U.S. Department of Commerce responded by threatening to impose duties on a wide swath of imported items, ranging from electronics to agriculture. Most of these duties were slated to begin in March 2019.

Under the U.S. Harmonized Tariff Schedule (HTS), a product’s duty rate is determined by its classification. For the most part, the wine industry had to be prepared for an extra cost on nearly all of its imported supplies, including the cork that seals each bottle. However, the HTS contains a handful of “exemptions” that, in theory, are supposed to protect U.S. consumers from unnecessary costs. In the case of wine corks, one of those exemptions was triggered.

Why wine corks are exempt

Corks are classified under HTS code 2205.90, which covers “Other cork or cork substitutes.” When Trump’s administration issued the tariff list, most products under that code were slated for a 25 % duty. But the HTS contains a provision—Section 201.2(b)—that exempts certain products that are “essential” to a particular industry, in this case, the wine industry. The exemption applies to “corks used in wine bottles” because they are deemed essential for the production and marketing of wine.

A quick dive into the U.S. International Trade Commission’s tariff schedules shows that the duty rate for “corks used in wine bottles” is effectively zero. The tariff was only applied to “cork stoppers, non‑wine use” and “cork used for other purposes.” That distinction is small but huge.

Why the loophole exists? The idea is that wine is a cultural commodity with a long‑standing tradition of using natural cork. The industry argued that a tariff on cork would hamper U.S. wineries, which rely on both imported and domestically produced corks to meet quality standards. The exemption was a nod to that argument.

Impact on U.S. wineries and the cork industry

The exemption has largely shielded U.S. wineries from a cost spike that would have rippled up the supply chain. According to the U.S. Wine Institute, the average cost of a cork is about $1.30 per bottle, but that can rise to $2–$3 for premium corks. A 25 % tariff would have increased that cost by roughly $0.30 per bottle—a significant amount when multiplied across millions of bottles.

Some U.S. cork manufacturers do not rely on imports. In fact, the U.S. imports about 70 % of its cork from Europe, mainly Portugal and Spain. The exemption meant that those imports could continue without paying additional duties, keeping prices stable for both wineries and consumers.

However, not all corks are exempt. The exemption specifically applies to corks that meet the “wine cork” definition—those that come with a cork stopper, used in a bottle of wine, and meet certain purity standards. Cork substitutes—like synthetic corks made from plastic or other materials—are not covered by the exemption. This leaves those manufacturers exposed to tariffs, potentially making their products more expensive.

Broader lessons: the art of tariff classification

The cork case underscores a recurring theme in U.S. trade policy: the devil is in the classification. The HTS is notoriously detailed, and small differences in product description can lead to wildly different duty rates. For industries that operate on thin margins, those differences can mean the difference between a profitable operation and a financial squeeze.

As the Seattle Times piece notes, the wine industry is not unique in navigating these quirks. Many sectors—like the coffee industry, which exports beans to the U.S. under a “coffee” tariff schedule—have also fought hard to get favorable classification. The U.S. also uses “special status” provisions for products that play a significant cultural or historical role in a given industry.

The tariff war has prompted many industry groups to lobby for a more transparent and predictable classification system. Some even argue for a more flexible approach that allows for exemptions on a case‑by‑case basis rather than a blanket duty on all items under a given HTS code.

Looking ahead: will wine corks still dodge duties?

As of the time of writing, the Trump administration had already rolled back many of the tariffs announced in 2018. The U.S. and the EU reached a partial trade agreement in early 2020, which included a temporary suspension of the wine tariff. That agreement also included a provision that allowed wine corks to remain duty‑free, preserving the status quo.

The new Biden administration, however, is still in the early stages of its trade policy. If it were to adopt a more aggressive stance on trade, the question remains: would the wine cork exemption survive? Industry insiders are hopeful that the exemption is a “deep‑rooted” feature of U.S. tariff law, but they also acknowledge that the political calculus could change.

Bottom line

In a trade war that sent shockwaves through countless industries, the wine cork managed to slip through the cracks. Thanks to a technicality in the tariff schedule, corks that seal a bottle of wine have avoided the 25 % duty that applied to most imported goods. This exemption has saved U.S. wineries from an extra cost that would have affected both producers and consumers. Yet the case also illustrates how fragile tariff classifications can be, and how small differences in product description can have huge economic consequences. For wine lovers, the lesson is that while the glass and the label may get the headlines, the humble cork remains a silent hero in the industry’s economic survival.