Oregon-based 'cork dork' celebrates Portugal's vital exemption from Trump tariffs after he lobbied hard for wine carveout
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Oregon-based 'cork dork' celebrates Portugal's vital exemption from Trump tariffs after he lobbied hard for wine carveout
"U.S. winemakers have something to celebrate: the corks they're popping aren't subject to tariffs. Cork comes from the spongy bark of the cork oak tree, which is 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." So as of Sept. 1, cork joined a handful of other items, including airplanes and generic pharmaceuticals, that are exempt from a 15% U.S. tariff on most EU products."
"The cork carve-out was vital for Portugal. The European country is the world's largest cork producer, accounting for about half of global production. Portuguese diplomats lobbied for the exemption on both sides of the Atlantic. Patrick Spencer, the executive director of the U.S.-based Natural Cork Council, raced from Salem, Oregon, to Washington, in June to explain cork's origins to U.S. trade officials and to seek a tariff reprieve. The Wine Institute, which represents California vintners, said that it also pushed for the special dispensation."
"Spencer said that 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." More than cork 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 didn't immediately respond when The Associated Press asked about tariff exemptions."
As of Sept. 1, cork was singled out as an "unavailable natural product" and exempted from a 15% U.S. tariff on most EU products under the U.S.-EU framework trade agreement. Cork is harvested from the cork oak in the Mediterranean basin, and Portugal supplies about half of global production. Portuguese diplomats and industry representatives, including the Natural Cork Council and the Wine Institute, lobbied for the exemption to protect producers and U.S. vintners. A U.S. appeals court questioned the president's authority to impose the tariffs, leaving their future uncertain. Cork's carve-out may foreshadow other natural-product exemptions.
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